ISLAMABAD, Aug 12: The average inflation measured through consumer price index (CPI) rose by 7.63 per cent year-on-year (YoY) during the first month of the fiscal year 2006-07 owing to high oil prices, transportation fares and food items.

Official figures released by Federal Bureau of Statistics (FBS) here on Saturday showed that the lowest income group recorded above average inflation in July 2006. Since the current wave of inflation was mainly due to the food group and food has a relatively higher weight in the consumption basket of the low income segment of population, the incidence of inflation was higher as compared to those of other income groups during the month.

The statistics also showed resurgence in other two measures of inflation--wholesale price index and sensitive price indicator. Although both food and non-food inflation increased during the month, the food group remained the key contributor to the overall inflation.

Food inflation increased to 7.44 per cent in July 2006. The reasons for this increase as pointed out were mainly due to a weak base along with significant increase in prices of a number of important items, including tomatoes, onions, chicken farm, vegetables, fruits, milk, meat, sugar, potatoes, cold drinks, and pulses.

The statistics showed that prices of tomatoes were up by (69.35pc), onions (19.34pc), chicken farm (13.80pc), vegetables (12.92pc), fresh fruits (8.27pc), beverages (2.36pc), besan (2.31pc), pulse moong (1.63pc), betel leaves and nuts (1.61pc), eggs (1.21pc), jam, tomato, pickles and vinegar(1.13pc), readymade food (1.02pc), potatoes and milk fresh (0.84pc), tea (0.62pc), milk products and gur (0.61pc), spices (0.60pc), wheat (0.57pc), sugar (0.56pc) and meat (0.54pc).

While the non-food inflation increased to over 6 per cent during the month of July 2006. The increase in this group during the month under review was mainly contributed by higher inflation in fuel and lighting, furniture and equipments, cleaning, laundry and personal appearance and education. Increase in fuel and lighting resulted primarily due to significant increase in gas cylinder prices; higher prices of air conditioners and fans caused rise in household furniture and equipment sub-group; record high gold and silver prices pushed up inflation in cleaning, laundering and personal appearance; and higher inflation in education was the result of an increase in university fees.

The statistics showed that the price of natural gas up 8.76pc, electric iron, fans and washing machine up (1.31pc), sewing machine, clock and needles (1.02pc), plastic products (0.85pc), utensils (0.72pc) and household servant (0.64pc), airfare (10.26pc), CNG filing charges (6.58pc) and tyre and tube (0.70pc), stationery (0.96pc), tuition fee (0.80 pc), jewellery (3.65pc), laundry charges (1.69pc), washing soap and detergent (0.75pc), and watches (0.65pc).