ISLAMABAD: Consumer inflation fell to 4.8 per cent in April from 4.9pc in the preceding month on the back of a slight decline in prices of non-perishable products.

Inflation rose 1.4pc month-on-month in April compared to a 0.8pc increase in the previous month and 1.5pc in April 2016, according to figures released by the Pakistan Bureau of Statistics on Tuesday.

The main inflation is measured through Consumer Price Index (CPI), which tracks prices of around 480 commodities every month in urban centres across the country.

Average annual inflation in the first 10 months, i.e. from July to April, of the current fiscal year stood at 4.09pc against 2.79pc in the same period a year ago.

The annual inflation target for the current fiscal year is 6pc. In the preceding fiscal year, average annual inflation was recorded at 2.86pc. Inflation in the food group, whose weight in the CPI basket is 34.83pc, stood at 4.4pc in April. On a month-on-month basis, food inflation increased 1.7pc in April due to an increase of 9.7pc in the prices of perishable and 0.46pc in non-perishable products.

Food items whose prices increased the most in April were fresh vegetables 20.6pc, fresh fruit 8.7pc, chicken 3.34pc, potatoes 2.81pc, and rice 2.55pc.

Core inflation, measured by excluding the volatile food and energy prices, was recorded at 5.5pc in April, up 1.3pc from the preceding month.

Core inflation has remained subdued since November 2015 because of a tighter monetary policy and reduction in food and fuel prices. Government borrowing is one of the key factors influencing the trend of core inflation.

Non-food inflation was recorded at 5.1pc in April, an increase of 1.2pc over the preceding month. Within the group, water supply prices went up by 2.08pc and house rent 1.52pc during the month. The education and health indices rose 12.5pc and 13.4pc, respectively, in April on a year-on-year basis. The index of clothing and footwear rose by 3.4pc and that of housing, water, electricity, gas and other fuels by 5.1pc. Meanwhile, the Sensitive Price Index edged up 1.51pc in the 10 months under review. However, the Wholesale Price Index witnessed a negative growth of 1.30pc.

Published in Dawn, May 3rd, 2017