ISLAMABAD, Jan 12: Inflation rose by 8.88 per cent during the month of Dec 2006 over the same month in 2005 owing to an unusual increase in prices of foodstuffs, fuels, education fees and doctors’ consultations.

The consumer price index rose by 0.47 per cent last month over November. The index had recorded a negative growth in Dec 2005 and Dec 2004.

According to figures released here on Friday by the Federal Bureau of Statistics, the half-yearly index recorded a growth of 8.39 per cent over the same period of last year. The figure was 8.29 per cent during the July-November period of the current fiscal year.

The government found it very difficult to keep inflation below six per cent – a target it set in July-- despite the tight monetary policy of the State Bank of Pakistan (SBP) and subsidies.

The analysis of the official data showed that from July to December, foodstuffs and beverages, fuel and expenditure on medical treatment contributed most to the overall inflation.

The average cost of eatables and beverages rose by 7.44 per cent in July 2006, 11.08pc in August, 11.26pc in September, 10.54 pc in October, 10.62pc in November and 12.71pc in December over the corresponding months of 2005.

The cost of fuel went up by 13.21pc in July, 13.02pc in August, 12.12pc in September, 12.4pc in Oct, 10.51pc in November and 10.91 pc in December.

The expenditure on medical treatment recorded a growth of 4.06pc in July, 7.89pc in August, 9.77pc in September, 8.5pc in October, 9.75pc in November and 9.65 percent in December.

Although the government provided subsidies, the prices of cooking oil and ghee, milk, pulses, sugar and wheat recorded a rapid growth during the last few months.

The non-food inflation also witnessed a substantial increase during the period under review, particularly due to the government’s refusal to reduce oil prices.