‘Increased gas prices contributing to inflation’

Published October 18, 2018
Recent increase in gas prices has contributed significantly towards inflation, say experts. recent increase in gas prices contributed significantly towards it. — Photo/File
Recent increase in gas prices has contributed significantly towards inflation, say experts. recent increase in gas prices contributed significantly towards it. — Photo/File

ISLAMABAD: The Natio­nal Price Monitoring Committee (NPMC) on Wednesday called rising inflation a challenge while observing that the recent increase in gas prices contributed significantly towards it.

The meeting – chaired by Special Secretary Finance Noor Ahmed – also cited the rise of crude oil prices in international markets and strong domestic demand as other reasons behind increasing inflation.

Mr Ahmed informed the committee that fluctuations in world economies have created uncertainties in emerging markets and as a result currencies have devalued significantly. The committee was infor­med that the US Federal Reserve was raising interest rate while oil price was estimated to hit $90 per barrel mark.

“Rising inflation is a challenge,” said Mr Ahmed. He directed that the provincial governments need to adhere to strict price monitoring and remain vigilant so that no supply disruption of commodities in the markets takes place.

The committee observed that core inflation increased by 8.0 per cent in September 2018 as compared to 5.4pc in the same period last year. The trend is alarming and signals rising inflation in coming months.

The committee observed a rising SPI trend over the last six weeks. The weekly SPI — which monitors the price movement of 53 essential items — recorded an increase of 3.65pc on October 11, 2018. However significant impact came from increase in gas prices by 15.45pc over previous week.

It was highlighted that prices were significantly lower in sasta bazaars as compared to open markets.

The meeting was informed that CPI increased by 5.6pc during Jul-September in current fiscal year compared to 3.4pc of the same period last year.

Published in Dawn, October 18th, 2018

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Judiciary’s SOS
Updated 28 Mar, 2024

Judiciary’s SOS

The ball is now in CJP Isa’s court, and he will feel pressure to take action.
Data protection
28 Mar, 2024

Data protection

WHAT do we want? Data protection laws. When do we want them? Immediately. Without delay, if we are to prevent ...
Selling humans
28 Mar, 2024

Selling humans

HUMAN traders feed off economic distress; they peddle promises of a better life to the impoverished who, mired in...
New terror wave
Updated 27 Mar, 2024

New terror wave

The time has come for decisive government action against militancy.
Development costs
27 Mar, 2024

Development costs

A HEFTY escalation of 30pc in the cost of ongoing federal development schemes is one of the many decisions where the...
Aitchison controversy
Updated 27 Mar, 2024

Aitchison controversy

It is hoped that higher authorities realise that politics and nepotism have no place in schools.