ISLAMABAD: Inflation rose 9.1 per cent in August from a year ago, its slowest pace of increase in 32 months, which analysts said paves way for the State Bank of Pakistan to continue with monetary policy easing.
The central bank cut its key policy rate by 150 basis points to 10.5 per cent last month, and analysts said inflation remaining in single digit for two consecutive months, could give the SBP room to further lower its discount rate in October.
Inflation rose 9.6 per cent in July from an year ago.
However on a month-on-month basis, inflation rose 0.9 per cent in Aug, compared with a decrease of 0.2 per cent in July and Pakistan Bureau of Statistics predicts a rise in non-food items due to a persistent increase in energy prices.For the first three months of 2012/13 fiscal year (July-June) inflation rose at an average of 9.32 percent over the same period last year.
Core inflation, which is non-food and non-energy inflation, rose 10.8 per cent in August from a year ago but witnessed a slight decline when compared with July.
In August, total food inflation was 8.14 per cent from a year ago, non-perishable food items witnessed a surge of 7.25 per cent and perishable items increased 13.36 per cent in August over last year.
The price of food items, which registered an increase include: Tomatoes (78.64 pc), Onions (46.27 pc), Pulse Gram (46.13 pc), Besan (43.65 pc), Gram Whole (23.96 pc), Honey (21.08 pc), Beans (19.60 pc), Condiments (19.32 pc), Fresh Fruits (18.31 pc), Milk Powder (17.70 pc) and Cooking Oil (13.43 pc).
Non-food items which increased: Text Books (40.47 pc), Household Servant (28.72 pc), Motor Vehicle Tax (26.89 pc), Doctor (MBBS) Clinic Fee (22.37 pc), Firewood Whole (21.46 pc), Utensils (21.34 pc), Cleaning & Laundary (20.18 pc), and Dopatta (18.98 pc).Housing, water, electricity, gas and fuel rose 4.42 per cent and health care cost increased 15.62 per cent in August over the same month last year.
Transportation fare increased 15.41 per cent mainly due to an increase in the price of diesel, petrol and CNG filling charges.
The PBS statistics showed that inflation measured through sensitive price index was up 8.2 per cent in August and inflation in the wholesale manufactured products also increased 7.7 per cent over August last year.