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ISLAMABAD: The pace of increase in prices of essential commodities remained at an 11-year low for the third consecutive month, as inflation rose only 3.9% in January, reported the Pakistan Bureau of Statistics (PBS) on Monday.
The slowdown in the price increase was noted both in food and energy products – the two main groups that have a majority of the commodities in the Consumer Price Index (CPI).
The CPI rose 3.88%, to be precise, said the national data collection agency. The indicator tracks price movements of 481 commodities every month.
The Wholesale Price Index decelerated in January and rose only 1.03%, indicating the crash in factory-gate prices would translate into a further reduction in retail prices in the months ahead.
The inflationary pressures seemed to be easing out, as the fuel- and food-adjusted inflation, known as core inflation, also slowed down to 6.4% on a year-on-year (YoY) basis in January, a reduction of 0.3% over previous month.
Core inflation that is given more importance by economists was 8% in January last year.
In view of the sharply lower inflation, the State Bank of Pakistan cut the discount rate by 100 basis points to 8.5% in its fresh monetary policy.
According to the PBS, in January the food and non-alcoholic beverages group rose 3.9% YoY. The index had been recorded at 3.4% in December.
In January, there was an increase of 2.13% in prices of non-perishable food items while rates of perishable food items increased only 2.1% over a year ago.
On a YoY basis, tomato prices decreased one-third, onion prices fell over 28%, tea prices declined 15.5%, kerosene oil dropped 9.3% and motor fuel fell over 6%.
In January, potato prices recorded the major increase of 49% in comparison to the previous year.
Average inflation in the first seven months of the current fiscal year (July-January) rose 5.8% as compared to the same period of previous year, according to the PBS.
For the current year, the government has set the inflation target at 8%, which is expected to be achieved on the back of reduced commodity prices.
On a monthly basis, the CPI-based inflation increased only 0.08% in January over December. Prices of food items, non-alcoholic beverages and tobacco also decelerated.
Prices of clothing and footwear remained constant, which was an unusual phenomenon. Rates of housing, water, electricity, gas and other fuels increased 1.42% in January over the previous month. Transport charges rose 0.27%, while the communications group decelerated in January over the previous month.
Published in The Express Tribune, February 3rd, 2015
Consumer Price Index: Inflation at 11-year low for third month in a row – The Express Tribune
The slowdown in the price increase was noted both in food and energy products – the two main groups that have a majority of the commodities in the Consumer Price Index (CPI).
The CPI rose 3.88%, to be precise, said the national data collection agency. The indicator tracks price movements of 481 commodities every month.
The Wholesale Price Index decelerated in January and rose only 1.03%, indicating the crash in factory-gate prices would translate into a further reduction in retail prices in the months ahead.
The inflationary pressures seemed to be easing out, as the fuel- and food-adjusted inflation, known as core inflation, also slowed down to 6.4% on a year-on-year (YoY) basis in January, a reduction of 0.3% over previous month.
Core inflation that is given more importance by economists was 8% in January last year.
In view of the sharply lower inflation, the State Bank of Pakistan cut the discount rate by 100 basis points to 8.5% in its fresh monetary policy.
According to the PBS, in January the food and non-alcoholic beverages group rose 3.9% YoY. The index had been recorded at 3.4% in December.
In January, there was an increase of 2.13% in prices of non-perishable food items while rates of perishable food items increased only 2.1% over a year ago.
On a YoY basis, tomato prices decreased one-third, onion prices fell over 28%, tea prices declined 15.5%, kerosene oil dropped 9.3% and motor fuel fell over 6%.
In January, potato prices recorded the major increase of 49% in comparison to the previous year.
Average inflation in the first seven months of the current fiscal year (July-January) rose 5.8% as compared to the same period of previous year, according to the PBS.
For the current year, the government has set the inflation target at 8%, which is expected to be achieved on the back of reduced commodity prices.
On a monthly basis, the CPI-based inflation increased only 0.08% in January over December. Prices of food items, non-alcoholic beverages and tobacco also decelerated.
Prices of clothing and footwear remained constant, which was an unusual phenomenon. Rates of housing, water, electricity, gas and other fuels increased 1.42% in January over the previous month. Transport charges rose 0.27%, while the communications group decelerated in January over the previous month.
Published in The Express Tribune, February 3rd, 2015
Consumer Price Index: Inflation at 11-year low for third month in a row – The Express Tribune
