Inflation is on the rise, rather alarmingly. All the three price indices for July-September showed record rise in prices over last year's corresponding period, the highest in the past five years or more. The Sensitive Price Indicator (SPI) during the current period has jumped by 14.02 percent as compared to 1.66 of last year: Consumer Price Index (CPI) by 9.18 per cent as against 1.78 percent previously and Wholesale Price Index by 8.71 percent as against 3.88 percent previously.
The abnormal inflation has been caused by rise in food and beverage prices of 13.13 percent during the year; high rents which rose by 10.17 percent; and transportation and communication costs which went up by 6.82 percent. The average weight in prices of food and beverages is 40.34 percent; house rent 23.43 percent and transport and communication 7.32 pr cent. Their cumulative weight is nearly 71 per cent.
Households are worried that another bout of inflation would hit them because in the coming months, if not weeks, the oil prices would soar, and so also flour prices, badly hurting common man's budget.
Over the year, the rise in food prices was: Onions 46 percent; potatoes 62 percent; wheat flour 22 percent; Irri rice 21 percent; mutton 31 percent; beef 32 percent; kerosene, firewood, diesel, petrol and firewood between 16 and 20 percent; LPG cylinder 17 percent; eggs 12 percent; rice basmati broken 12 percent; bread plain 12 percent; milk and curd by 11 percent.
Further bout of inflation is feared because of the price hike on the eve of Ramazan. Despite government's warnings to keep the price low, the rates of vegetables at Islamabad Sunday bazaars were one of the highest, especially of tomatoes (Rs 40 per kilo) and other vegetables.