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The inflation had touched the decade’s lowest level of 2.5 percent in the month of March over the corresponding period of previous year mainly due to the massive decline in oil prices in last six months.
Inflation, measured by the Consumer Price Index (CPI), remained at more than two decades lowest level for the month of March, at 2.5 percent, the Pakistan Bureau of Statistics (PBS) said on Wednesday.
The inflation is continuously declining from last several months apparently because of the tumbled petroleum products in the country.
The marked slowdown in inflation had forced the State Bank of Pakistan (SBP) to slash the discount rate by 50 basis points to 8 percent in its last monetary policy announcement. The central bank projected that headline CPI inflation continues to follow a downward trajectory and is expected to be well below the annual target of 8.0 percent; latest SBP projection range is 4-5 percent for average CPI inflation in FY15.
However the Asian Development Bank (ADB) had estimated that headline inflation is expected to average 5.8 percent in FY2015, assuming some rise in oil prices from lows in the first half of FY2015, some hiked gas and electricity tariffs toward implementing structural policy to bring tariffs closer to cost recovery, and the impact of midyear increases in sales taxes and duties for several items to bolster budget revenue.
The economic experts believed that inflation could start increasing during the ongoing month of April 2015, as the government had increased the prices of petrol and diesel. The government approved Rs 4 per liter increase in petrol price and Rs 3 per liter increase in High Speed Diesel price for the current month, which could enhance the prices of basic commodities and fares of public transports resulting in higher inflation rate.
The Wholesale Price Index (WPI) that captures prices in the wholesale market decelerated for the fourth consecutive month and clocked in at negative 3.7 percent in March 2015 over the March last year, PBS said. Pakistan had already landed into deflation (a negative inflation rate), as inflation rate measured by the changes in Wholesale Price Index (WPI) already showing negative growth, believed Dr Ashfaq Hassan Khan, former finance advisor to the government and currently dean of Business School at the National University of Sciences and Technology. The country’s headline monthly inflation, measured by the consumer price index (CPI), has recorded at 2.5 percent in March 2015 over the corresponding period last year. The previous lowest level of inflation was 3.1 percent back in 2002-03 during the period 1990-91 till March 2015.
According to the latest figures of Pakistan Bureau of Statistics (PBS), average inflation in first nine months (July-March) of the ongoing fiscal year has remained at 5.12 percent over the corresponding period last year. Meanwhile, the sensitive price indicator (SPI), which gauges weekly inflation in kitchen items, has increased by 2.25 percent in July-March 2014-15 as against the same month of last year. Similarly, the Wholesale Price Index (WPI) based inflation increased by 0.36 percent in the period under review. In March 2015, food and non-alcoholic beverages prices were down by 0.48 percent and utilities (housing, water, electricity, gas and fuel) by 5.70 percent. Health and education charges became dearer by 4.31 percent and 14.22 percent, respectively.
Prices of alcoholic beverages and tobacco stood at 20.20 percent, clothing and footwear 7.37 percent and furnishings and household equipment maintenance 5.55 percent. Charges related to recreation and culture went up 3.31 percent and restaurants and hotel 4.97 percent in March 2015 over the same month in 2014.
However, transportation charges were down by 10.74 percent because of the declining petroleum prices.
Meanwhile, the PBS data showed that price of onions increased by 23.29 percent in the month of March 2015 against February, price of tomatoes 8.19 percent, fresh fruits 5.97 percent, fresh vegetables 4.26 percent, chicken 1.92 percent and jam, tomatoes ketchup and pickles prices enhanced by 1.25 percent. Similarly, in non-food commodities, price of cotton cloth increased by 0.77 percent and Cleaning & Laundry 0.53 percent.
Meanwhile, prices of following commodities decreased eggs 8.06 percent, potatoes 6.35 percent, pulse gram 2.12 percent, besan 1.98 percent, masoor pulse 1.43 percent, rice 1.29 percent and fish 1.13 percent during March over February.
Inflation drops to decade’s lowest level
Inflation, measured by the Consumer Price Index (CPI), remained at more than two decades lowest level for the month of March, at 2.5 percent, the Pakistan Bureau of Statistics (PBS) said on Wednesday.
The inflation is continuously declining from last several months apparently because of the tumbled petroleum products in the country.
The marked slowdown in inflation had forced the State Bank of Pakistan (SBP) to slash the discount rate by 50 basis points to 8 percent in its last monetary policy announcement. The central bank projected that headline CPI inflation continues to follow a downward trajectory and is expected to be well below the annual target of 8.0 percent; latest SBP projection range is 4-5 percent for average CPI inflation in FY15.
However the Asian Development Bank (ADB) had estimated that headline inflation is expected to average 5.8 percent in FY2015, assuming some rise in oil prices from lows in the first half of FY2015, some hiked gas and electricity tariffs toward implementing structural policy to bring tariffs closer to cost recovery, and the impact of midyear increases in sales taxes and duties for several items to bolster budget revenue.
The economic experts believed that inflation could start increasing during the ongoing month of April 2015, as the government had increased the prices of petrol and diesel. The government approved Rs 4 per liter increase in petrol price and Rs 3 per liter increase in High Speed Diesel price for the current month, which could enhance the prices of basic commodities and fares of public transports resulting in higher inflation rate.
The Wholesale Price Index (WPI) that captures prices in the wholesale market decelerated for the fourth consecutive month and clocked in at negative 3.7 percent in March 2015 over the March last year, PBS said. Pakistan had already landed into deflation (a negative inflation rate), as inflation rate measured by the changes in Wholesale Price Index (WPI) already showing negative growth, believed Dr Ashfaq Hassan Khan, former finance advisor to the government and currently dean of Business School at the National University of Sciences and Technology. The country’s headline monthly inflation, measured by the consumer price index (CPI), has recorded at 2.5 percent in March 2015 over the corresponding period last year. The previous lowest level of inflation was 3.1 percent back in 2002-03 during the period 1990-91 till March 2015.
According to the latest figures of Pakistan Bureau of Statistics (PBS), average inflation in first nine months (July-March) of the ongoing fiscal year has remained at 5.12 percent over the corresponding period last year. Meanwhile, the sensitive price indicator (SPI), which gauges weekly inflation in kitchen items, has increased by 2.25 percent in July-March 2014-15 as against the same month of last year. Similarly, the Wholesale Price Index (WPI) based inflation increased by 0.36 percent in the period under review. In March 2015, food and non-alcoholic beverages prices were down by 0.48 percent and utilities (housing, water, electricity, gas and fuel) by 5.70 percent. Health and education charges became dearer by 4.31 percent and 14.22 percent, respectively.
Prices of alcoholic beverages and tobacco stood at 20.20 percent, clothing and footwear 7.37 percent and furnishings and household equipment maintenance 5.55 percent. Charges related to recreation and culture went up 3.31 percent and restaurants and hotel 4.97 percent in March 2015 over the same month in 2014.
However, transportation charges were down by 10.74 percent because of the declining petroleum prices.
Meanwhile, the PBS data showed that price of onions increased by 23.29 percent in the month of March 2015 against February, price of tomatoes 8.19 percent, fresh fruits 5.97 percent, fresh vegetables 4.26 percent, chicken 1.92 percent and jam, tomatoes ketchup and pickles prices enhanced by 1.25 percent. Similarly, in non-food commodities, price of cotton cloth increased by 0.77 percent and Cleaning & Laundry 0.53 percent.
Meanwhile, prices of following commodities decreased eggs 8.06 percent, potatoes 6.35 percent, pulse gram 2.12 percent, besan 1.98 percent, masoor pulse 1.43 percent, rice 1.29 percent and fish 1.13 percent during March over February.
Inflation drops to decade’s lowest level
