ISLAMABAD - The government has successfully kept the inflation rate in single digit figure during the first half (July-December) of the ongoing financial year 2012-13, as it recorded at 8.32 per cent in period under review against corresponding period last year.

This broad-based deceleration in inflation is now expected to keep the average inflation for the fiscal year 2012-13 below the 9.5 per cent target for the year. Due to decline in inflation rate, the State Bank of Pakistan (SBP) has reduced interest rate by 50 basis points to 9.5 percent with effect from 17 December 2012. According to the figures of Pakistan Bureau of Statistics (PBS) released on Tuesday, inflation based on Consumer Price Index (CPI) has recorded at 7.9 per cent during the month of December compared to the month of the preceding year. Meanwhile, CPI inflation increased by 0.2 per cent in December as compared to the month of November.
The break-up of CPI-based general inflation (7.93 per cent in December 2012 over December 2011) showed that food and non-alcoholic beverages prices have gone up by 7.19 per cent, alcoholic beverages and tobacco prices have increased by 18.21 per cent, clothing and footwear prices soared by 15.21 per cent, housing water, electricity and gas fuels, 4.12 per cent, health care charges went up by, 14.29 per cent, transportation charges, 8.94 per cent, communication charges 0.61 per cent, recreation and culture charges went up by 17.86 per cent, education charges, 10.04 per cent and restaurants and hotel charges by 10.66 per cent and miscellaneous 11.29 per cent in December 2012 against the same month of the preceding year2011.
Meanwhile, according to the PBS figures, prices of chicken has increased by 10.95 per cent in the month of December against November, per dozen price of eggs enhanced by 8.41 per cent, price of wheat went up by 2.78 per cent, price of rice surged by 1.11 per cent, price of bakery and confectionary increased by 0.98 per cent, readymade food prices surged by 0.66 per cent and tea prices soared by 0.65 per cent in December 2012 as compare to November.
Similarly, prices of footwear increased by 4.18 per cent, price of woolen readymade garments enhanced by 3.89 per cent, doptta price surged by, 2.19 per cent and household servants charges, 1.43 per cent in December 2012 compared with the month of November 2012. 
However, according to the PBS figures, price of onions decreased 20.56 per cent, price of fresh vegetable down by 8.48 per cent, prices of potatoes went down by 6.62 per cent, gur prices reduce by 1.83 per cent, fresh fruits and sugar 1.30 per cent each in December 2012 against in November.