The meeting of National Price Monitoring Committee was held at the Finance Division with special secretary finance in the chair on Wednesday. The chairman informed the forum that there is lot of flux that characterizes the world economy at present, emerging markets are facing uncertainty. Their currencies have devalued significantly. The Federal Reserve is raising the interest rate, says a press release.
After seeing a decade long zero rates it has surged 2.5 percent which is pushing dollar relative to other currencies. Oil prices have crossed $85 barrel and are estimated to hit $90.The rising inflation is a challenge. He urged the provincial governments that they should adhere to strict price monitoring and remain vigilant that no supply disruption of commodities in the markets takes place. The main reason for the rise is increase in international crude oil prices. A combination of factors such as strong domestic demand, which is also visible from pressure on external and fiscal side, possible lagged impact of recent upward adjustment in gas prices, exchange rate depreciation are contributing to recent pickup in inflation.
The meeting was informed that CPI increased by 5.60 percent during Jul-September FY 2019 compared to 3.39 percent of the same period last year. The Core Inflation increased by 8.0 percent in September 2018 as compared to 5.4 percent in the comparable month of last year. The trend is alarming and signals of rising inflation in coming months.
The committee observed the rising SPI trend over the last six weeks. The Weekly SPI which monitors the price movement of 53 essential items recorded an increase of 3.65 percent on 11th October 2018. The significant impact came from increase in gas prices by 15.45 percent over previous week.
The meeting also reviewed the prices of essential items in sasta bazaars and open markets and noted that the prices are significantly lower in sasta bazaars as compared to open markets.
The chair emphasized that in case if the provincial governments and other stakeholders see any shortage of essential consumer items they should immediately report to the NPMC committee so that the federal government takes appropriate measures. He also asked the Competition Commission of Pakistan to remain vigilant that no cartelization takes place. In view of difficult times ahead the meeting decided as under: The provincial governments will fully activate price monitoring and control mechanism at district level and below to ensure price stability.-PR