ISLAMABAD: Inflation decelerated to 3.8 per cent in February from 4.4pc in the previous month, owing to a slight decline in prices of perishable and non-perishable eatables.

Inflation, measured through the Consumer Price Index (CPI), has eased for the second consecutive month after it reached its highest peak of 4.6pc in December 2017.

The CPI tracks the prices of around 480 commodities every month in urban centres across the country, according to data released by the Pakistan Bureau of Statistics on Thursday.

Average inflation in the first eight months (July-February) of 2017-18 was 3.84pc as compared to 3.9pc in the corresponding period last year.

The annual inflation target for the current fiscal year was 6pc.

Food inflation was 2.2pc on an annual basis but dipped 1.1pc on a monthly basis.

Prices of non-perishable food items declined 0.27pc while those of perishable products dropped 7.3pc during the month.

Food items whose prices increased the most in February were betel leaves and nuts, up 53pc, fresh fruits 5.8pc and tea 1.74pc.

In the same category, onions dipped 25.3pc month-on-month, tomatoes 20.5pc, potatoes 18.76pc, eggs 10pc, fresh vegetables 8.1pc, chicken 5.02pc, gur 4.6pc, sugar 3.4pc, pulse mash 3.3pc, pulse masoor 1.6pc, gram whole 1.5pc and besan 1.03pc.

Non-food inflation remained 4.9pc year-on-year, and 0.2pc on a month-on-month basis.

Global crude oil prices increased in the past few months and their impact was passed on to the consumers in Pakistan.

Core inflation, measured by excluding volatile food and energy prices, was recorded at 5.2pc in February.

The gradual build-up of domestic demand is evident in the rising core inflation. Of the 89 commodity groups of CPI, it covers the price movement of 43 items.

The core inflation has remained subdued since November 2015 because of a tighter monetary policy and is expected to go up.

Education and health indices rose 12.2pc and 4.9pc respectively on a year-on-year basis.

A decline of 17.4pc was witnessed in the index of alcoholic beverages and tobacco. The index of clothing and footwear rose by 4.6pc while that of housing, water, electricity, gas and other fuels by 4.2pc.

Published in Dawn, March 2nd, 2018