Islamabad, Pakistan, 11/02/2021 / Islamabad News Bureau /
The upward trend in consumer prices continued in October, with inflation climbing to 9.2% from 9% in September, thanks to rapid rupee devaluation and higher energy costs last month, according to Pakistan Bureau of Statistics (PBS) statistics released on Monday.
Inflation, as measured by the Consumer Price Index (CPI), rose to its highest level in four months, during which time global oil prices continued to rise gradually, weakening prior improvements. At the same time, costs for fresh vegetables, fruits, and meat have been steadily rising in major metropolitan areas.
Inflation jumped to 8.74 percent on a year-over-year basis during the July-October period. Inflation has begun to fall after peaking at 11.1 percent in April, owing primarily to a decline in agricultural commodity prices. The tendency is currently reversing as the price of petroleum products rises.
Annual CPI inflation was 8.90% in 2020-21, down from 10.74% the previous year.
In response to the country’s rising inflation, Adviser to the Prime Minister on Finance and Revenue Shaukat Tarin stated that it was a worldwide issue, adding that “prices of commodities in the world are not in my control.” Pakistan is now importing wheat and sugar in addition to pulses, he said, adding that increasing international costs will affect domestic pricing as well.
Responding to questions about inflation on the sidelines of the launch of the Pakistan Single Window, Mr Tarin emphasised that the supply chain was disrupted by the coronavirus pandemic, but that the economy is now recovering.
Food inflation remains higher in urban areas, rising 9.4 percent year on year and 1.5 percent month on month in October, compared to 7.2 percent and 2.6 percent respectively in rural areas.
According to PBS data, the following food items saw an increase in price in October compared to the previous month: chicken 17.91%, vegetables 15.26%, potatoes 12.17%, wheat 7.25%, tea 4.93%, mustard oil 4.68%, vegetable ghee 2.72%, gur 2.68%, fish 2.22%, cooking oil 1.77%, meat 1.72%, beans 1.50%, and fruits 1.10%.
Onion prices fell by 12.70% in urban areas, sugar by 7.72%, pulse moong by 6.14%, eggs by 5.94%, condiments and spices by 3.85%, pulse gram by 2.30%, pulse mash by 2.12%, and wheat flour by 1.44%.
Non-food inflation in urban regions was 9.7% year on year and 1.8% month on month, while it grew by 10% and 1.9%, respectively, in rural areas. The spike in non-food inflation was mostly driven by a significant increase in oil prices in October.
Core inflation in urban areas was 6.7% in October, up from 6.4% the previous month. In rural regions, the comparable rise was 6.7% vs 6.2%.
The State Bank sets the main policy rate, which is now 7.25%, depending on the core inflation rate.
The Sensitive Price Index estimated average inflation at 15.2% in October, down from 16.6% the previous month, while the Wholesale Price Index increased to 19.6% from 17.1%.
Source: Submit123News
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