MABAD - Inflation remains in double digits in the first quarter (July-September) of current fiscal year 2009-10 despite State Bank of Pakistan (SBP) pursued tight monetary policy in the aforementioned period to arrest it.
The SBP in its latest monetary policy has maintained mark up rate at 13 percent to control the soaring inflation, which enhanced by 10.66 percent in July-September 2009.
The government in the current federal budget targeted to bring inflation down to a single digit in the year 2009. The economists believed that the government would achieve the target before December this year, as the prices of petroleum products are dipping in international market.
Meanwhile, the inflation based on Consumer Price Index (CPI) surged by 10.66 percent in the first three months of the current financial year against the same period of last fiscal year, Federal Bureau of Statistics reported on Monday.
According to the figures, the inflation measured by Wholesale Price Index (WPI) enhanced by 0.49 percent in the first quarter of the current fiscal year, while inflation based on Sensitive Price Indicator (SPI) was recorded at 9.29 percent in the under reviewed period, the data further revealed.
The break-up of CPI based on general inflation (10.66 percent in September 2009) illustrated that apart from 10.02 percent food inflation, apparel, textile and footwear inflation soared by 5.57 percent in September 2009 over the same period of the last year. Similarly, house rents increased by 16.77 percent.
The fuel prices augmented by 12.72 percent, household, furniture and equipment by 7.16 percent, transport and communication down by 6.39 percent, recreation and entertainment up by 2.43 percent, education became expensive by 13.45 percent, cleaning and laundry rates swelled by 11.71 percent and medicare rates shot up by 5.2 percent during the period under review.
On month-on-month basis, the CPI based inflation ballooned by 0.45 percent in September over August 2009. While inflation based on SPI increased by 0.56 percent. Wholesale Price Indicator went up by 0.17 percent.
The prices of main commodities in the kitchen items, which increased in September over August 2009, are: tomatoes, 43.08 percent; onions, 11.77 percent; eggs, 4.17 percent; fresh fruits, 2.95 percent; gur, 2.81 percent; fish, 2.36 percent; betel leaves and nuts, 1.43 percent; and wheat flour, 1.07 percent.
Similarly in apparel, textile and footwear group, tailoring charges went up by 3.06 percent and hosiery by 1.03 percent. Meanwhile, in cleaning laundry and personal appearance, prices of jewellery and toilet soap increased by 4.08 percent and 1.91 percent respectively.
The division of general inflation (0.17 percent) based on WPI showed that food basket became costly by 7.83 percent, raw materials, 4.71 percent, fuel, lighting and lubricants decreased by 7.88 percent, manufactures prices decreased by 0.50 percent, and cost of building materials went down by 13.90 percent in September over August 2009.