The CPI inflation swelled by 11.29 percent during July-March 2009-10 against the budgetary target of 9.5 percent and it is likely that it will go up further. Official figures released by the Federal Bureau of Statistic on Saturday showed that Wholesale Price Index (WPI) and Sensitive Price Indicator (SPI) increased by 10.08 percent and 12.54 percent, respectively during the period under review as compared to the same period last year.
Analysts say double-digit inflation is too high for Pakistan and would push more people below poverty line in the absence of any significant economic activity owing to prevailing law and order situation. According to them the inflation would hurt low and fixed income groups the most. The inflation has gone up due to increase in petroleum products prices, electricity and gas prices, which the government is increasing continually from January, 2010 as per agreement with the international Monetary Fund (IMF).
Talking to Business Recorder Dr Rashid Amjad Chief Economist, Planning Commission said though overall and core inflation started coming down recently, 9-10 percent inflation is still high and the government was taking fiscal and monetary measures to control it. We are very much concerned about inflation and are making concerted efforts to bring it down. He admitted that increase in power tariff would have some inflationary impact on the economy.
Economists say structural issues in the economy such as hoarding and artificial price increase of essential commodities by cartels and smuggling have also been responsible for high inflation in the country. They said this was evident from recent past when inflation in the other countries was declining while in Pakistan it was on rise.
Official figures showed an increase of 4.52 percent in food inflation during July-November 2009-10 as compared to the same period of last year followed by 3.59 percent surge in non-perishable food items, 3.55 percent in house rent, 0.66 percent in cleaning, laundry and personal appearance, 0.37 percent in fuel and lighting, 0.34 percent in transport and communication, 0.11 percent in medicare, 0.47 percent in education and 0.93 percent in apparel, textile and footwear.
The inflation rates based on CPI, SPI & WPI in November, 2009 increased by 10.51 percent, 10.75 percent and 12.46 percent respectively over the same month of last year while increase of 1.39 percent, 2.49 percent and 2.78 percent, respectively in November 2009 over previous month.
The main commodities, which showed an increase in their prices during November, 2009 over October included pulse moong (24.13 percent), sugar (21.33 percent), eggs (17.60 percent), potatoes (12.22 percent), pulse mash (7.86 percent), tea (6.71 percent), vegetables (5.64 percent), spices (4.26 percent), onions and fish (3.23 percent each), gram whole (2.30 percent), meat (2.08 percent), readymade food (1.93 percent), jam, tomato, pickles and vinegar (1.86 percent), dry fruit (1.63 percent), honey (1.13 percent), cigarettes (1.06 percent) and wheat (1.04 percent).
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