The CPI inflation soared by 10.26 percent during the first five months of the current fiscal year as compared to the corresponding period of the last year mainly on the back of increase in the prices of food commodities. Provisional figures of monthly inflation released by the Federal Bureau of Statistics (FBS) on Thursday showed that Wholesale Price Index (WPI) and Sensitive Price Indicator (SPI) surged by 3.44pc and 9.03 pc respectively for July-November 2009-10 over the same period of last year.
According to economists the 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 would go up further with 13.5pc increase in electricity tariff scheduled 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, 9-10pc 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.
According to some economists 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 4.52pc in food inflation during July-November 2009-10 as compared to the same period of last year followed by 3.59pc surge in non-perishable food items, 3.55% in house rent, 0.66 pc in cleaning, laundry and personal appearance, 0.37 pc in fuel and lighting, 0.34% in transport and communication, 0.11 pc in medicare, 0.47 pc in education and 0.93pc in apparel, textile and footwear.
The inflation rates based on CPI, SPI & WPI in November, 2009 increased by 10.51%, 10.75% and 12.46% respectively over the same month of last year while increase of 1.39%, 2.49% and 2.78% 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%), sugar (21.33%), eggs (17.60%), potatoes (12.22%), pulse mash (7.86%), tea (6.71%), vegetables (5.64%), spices (4.26%), onions and fish (3.23% each), gram whole (2.30%), meat (2.08%), readymade food (1.93%), jam, tomato, pickles and vinegar (1.86%), dry fruit (1.63%), honey (1.13%), cigarettes (1.06%) and wheat (1.04%).
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