CPI surges 14pc in 11 months

OUR STAFF REPORTER ISLAMABAD Inflation based on Consumer Price Index (CPI) has surged to 14 per cent during the first eleven months (July-May) of the ongoing financial year 2010-11 against the same period last year mainly due to the frequent increase in petroleum products prices and power tariff. According to the figures released by Federal Bureau of Statistics on Wednesday, the CPI based inflation registered at 14 per cent in July-May period of the ongoing financial year as compared to the same period last year. Meanwhile, the Sensitive Price Indicator (SPI) has went up by 18.30 per cent and Wholesale Price Index has enhanced by 23.25 per cent during July-May period of 2010-11 against July-May period of 2009-10. Like other economic targets, the government has missed all targets to achieve the inflation rate of 9.5 per cent during the ongoing financial year, as it has gone beyond the level of 14 per cent. The inflation increases due to several factors including borrowing by the government for deficit financing, upward adjustments in domestic energy prices, and frequent increase in petroleum products prices said an official of the Finance Ministry. Meanwhile, according to the figures of Federal Bureau of Statistics (FBS), the inflation based on Consumer Price Index (CPI) has surged by 13.23 per cent in May over the corresponding month of the previous year. Meanwhile the inflation based on Sensitive Price Indicator (SPI) has recorded at 16.67 per cent and for Wholesales Price Index (WPI) based inflation increased by 22.90 per cent. According to the FBS data, the CPI-based inflation had increased by 0.23 per cent in May as compared to the figures of April, and SPI-based inflation decline by 0.32 per cent and the WPI decreased by 1.55 per cent in May over April. The break-up of CPI-based general inflation (13.23 per cent in May 2011) illustrated that food inflation went up by 15.88 per cent, apparel, textile and footwear prices soared by 17.85 per cent, house rents were increased by 7.50 per cent, fuel prices by 12.09 per cent, household, furniture and equipment by 11.88 per cent, recreation and entertainment by 0.75 per cent, education by 5.75 per cent, cleaning and laundry rates by 17.19 per cent and Medicare rates shot up by 18.12 per cent and transport and communication charges went up by 15.93 per cent in May 2011 over the same period of the last year. If the prices of main kitchen commodities in May 2011 are compared with prices in April 2011, the increase in rates is as follows: potatoes, 16.61 per cent, milk powder, 5.90 per cent, milk products, 3.87 per cent, beverages, 3.66 per cent, milk fresh, 3.37 per cent, condiments, 2.73 per cent, jam, tomato, pickles and vinegar, 2.01 per cent, cereals, 1.80 per cent, betel leaves and nuts, 1.71 per cent, cooking oil, 1.67 per cent, bakery and confectionery, 1.09 per cent, gur, 1.04 per cent and meat 1.02 per cent. Meanwhile, prices of kerosene went up by 5.90 per cent, firewood, 2.54 per cent, petrol, 5.94 per cent, diesel, 4.86 per cent, transport charges, 3.38 per cent and CNG filling charges, 1.72 per cent in May 2011 compare to April 2011. Similarly, in education sector, tuition fees surged by 1.33 per cent and stationery 1.04 per cent. According to the figures, the prices of drugs and medicines increased by 3.68 per cent and doctors fee 1.44 per cent in May 2011 against April 2011.

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