ISLAMABAD, March 10: Inflation has decelerated in February on the back of decline in food items, suggested data of Statistics Division issued on Thursday.As a result, the headline inflation, which is based on consumer price index, eased to 12.91 per cent in February from 13.04 per cent in the same month last year.

The food prices of two perishable items tomatoes and onions witnessed a dip in the month under review. Other products, which also witnessed slight decrease, include potatoes, fresh fruits and eggs.

The overall impact in food price decline was because of these products, which have a six per cent weight in the basket of food items.

According to the Statistics Division, as a result of decline in prices of these products the food inflation in February decelerated to 17.72 per cent. Of these prices of non-perishable food items witnessed a surge of 16.44 per cent and that of perishable items 28.08 per cent in February over last year.

On the other hand, the State Bank has increased its discount rate to 14 per cent in the past few months to tame inflation.

As a result, the non-food and non-energy core inflation dipped to 9.2 per cent in February from 10.1 per cent last year on account of increase in benchmark interest rate by the central, but it is believed to be on higher side.

However, the house index rent rose by 6.52 per cent and medical care cost by 16.30 per cent in February over the same month last year. The transportation fare increased by 12.31 per cent during the month of February over the same month last year.

The average inflation in eight months also climbed to 14.33 per cent this year over the corresponding period of last year.

The IMF has forecast Pakistan’s annual inflation at 13.5 per cent by end June 2011. This is expected that inflation will exceed this target in case of further increase in energy price.

The statistics showed that the inflation measured through sensitive price index a weekly indicator up by 16.81 per cent in February showing an upward trend in prices.

The inflation in the wholesale manufactured products also witnessed highest ever increase by 24.43 per cent over the same month last year.