ISLAMABAD, June 2: CPI-based monthly inflation increased by 12.3 per cent in May 2012 as compared to the same month last year.

In April, inflation had witnessed an increase of 11.3 per cent.

According to data released by the Pakistan Bureau of Statistics (PBS), core inflation increased by 11.1 per cent in May 2012 compared to 10.8 per cent in April 2012, whereas it was 9.7 per cent in May 2011.

However, non-food and non-energy inflation increased by 0.8 per cent in May 2012 as compared to 1.4 per cent a month earlier and 0.5 per cent in May 2011.

The food items which witnessed increase in their prices in May included eggs, fresh fruits, pulse gram, gram flour, potato, rice, gram whole, milk powder, beans, nimco, honey, bakery and confectionery, dry fruits, milk products, betel leaves and nuts, milk fresh and cooking oil.

The prices of food items that decreased in May 2012 included tomato, vegetables, onion, wheat, sugar, gur and wheat flour.

The Wholesale Price Index (WPI) for May 2012 increased by 2.15 per cent over April 2012. It increased by 7.06 per cent over the corresponding month of the last year.

The Sensitive Price Index-based inflation registered a slight decline in the week ending on May 31.

According to PBS figures, combined SPI inflation inched down for the said week after remaining in the plus during two successive previous weeks.

The PBS data said that the SPI declined by 0.09 per cent for the combined income group.

However, the least beneficiary of drop in inflation is the lowest income group whereas the maximum beneficiary was the highest income group.

The SPI declined nominally by 0.05 per cent for those earning Rs8,000 and Rs12,000 per month.

For the income group earning between Rs12,001 and Rs18,000 per month, the SPI declined by 0.08 per cent and for the income group earning Rs18,001-Rs35,000 per month the SPI declined by 0.08 per cent.

For the highest income group earning more than Rs35,000 per month, SPI dropped by 0.10 per cent, and experts believed that it was mainly due to decline in prices of chicken.

The main reason for decline in SPI seems to be the drop in prices of nine items all in food category.However, economists at the Planning Commission said that usually there are price settlements after a couple of increases if there is no external reason to push up prices.

The prices of items which registered decline in the said week included onions, tomatoes, eggs, chicken, potatoes,  vegetable ghee, sugar, mustard oil and washed mash. The items that registered increase in their prices included LPG, bananas, garlic, washed gram, cooked beef plate, gur, washed masoor, wheat flour, packed cooking oil, wheat, Irri- 6, packed vegetable ghee, washed moong, firewood and red chilies.

Experts claimed that SPI may decline in the ongoing week due to the impact of reduction in petroleum prices, made by the government on June 1.