ISLAMABAD: The country has witnessed another low level of inflation, which has slowed to 2.1 per cent in April 2015 (lowest since 2003) from 2.5pc in March due to massive cut in petroleum and food prices.
According to the Pakistan Bureau of Statistics, the inflation measured through the Consumer Price Index (CPI) was 4.81pc on average during the first 10 months (July-April) of this fiscal year.
The deceleration in inflation was witnessed despite a double-digit increase (10.67pc) in price of perishable products followed by 8.66pc surge in education price and 1.55pc increase in price of recreation and culture in April 2015 over the previous month. Similarly, prices of housing, water, electricity, gas and fuels increased by 0.69pc in the month.
The increase in oil prices after six months may arrest further decline in transport prices this month as statistics showed an increase of 0.89pc in transport price in April 2015 over the previous month.
Core inflation – which is measured by excluding volatile food and energy prices – slowed for the seventh consecutive month by 0.6pc to 5.4pc in April compared to 5.9pc in the previous month. Falling inflation has also encouraged the State Bank of Pakistan (SBP) to cut its policy rate to a decade low.
In April, annual food inflation rose to 1.53pc over the previous month, while that of non-perishable food items and perishable items increased to 0.14pc and 10.67pc, respectively.
