ISLAMABAD, Sept 15: The continuous increase in the house rent and food items have pushed up inflation by 8.93 per cent in August 2006 over the corresponding month last year thus hitting the low income group.

The inflation measured through consumer price index (CPI) also registered an increase of 1.25 per cent during the August 2006 over July 2006. While the year on year increase in inflation stood at 8.28 per cent in July-August in 2006.

Adviser to Finance Ministry Dr Ashfaq Hassan Khan told Dawn that the sudden increase in inflation was expected due to heavy rains and flash floods during the last two months.

He said that the supply of food items to major cities disrupted due to which the food inflation rose 11.08 per cent which had a negative impact on the overall inflation. However, he said that the non-food inflation was around 7 per cent during the month under review.

Official statistics, however, showed that the house rent was constantly on the rise during the last six months. It rose by 0.42pc in March, 0.62pc in April, 0.60pc in May, 0.52pc in June, 0.54pc in July and 0.55pc in August 2006 over the same months last year.

The government remained silent about this phenomenal increase in the house rent which would have serious implications on the monthly budget of the low income group and middle class.

When asked the adviser asked about increase in house rent, he replied that it was not in his knowledge.

The statistics showed that prices of almost all food items rose during August 2006 over the previous month.

Following items registered increase in their prices: onion (16.55pc), tomatoes (13.45pc), eggs (13.39pc), vegetables (8.05pc), vegetable ghee (4.73pc), pulse gram (4.55pc), besan (4.12pc), fresh fruits (3.91pc), chicken farm (3.78pc), gur (3.20pc), mustard oil (3.10pc), tea (2.76pc), wheat flour (2.51pc), wheat (2.27pc), cooking oil (2.06pc), pulse moong (1.57pc), jam, tomato, pickles & vinegar (1.14pc) and sweetmeat & nimco (one per cent), LPG (1.73pc) and doctor’s fee (7.49pc).