ISLAMABAD: The falling world oil and food prices pushed down the national inflation rate to a six years low of 3.96 percent in outgoing month of November as compared to the same period last year.
According to Pakistan Bureau of Statistics (PBS), the November inflation figure is the lowest in last six months since the base year of calculating inflation had been changed to 2007-08.
The government had reduced the POL prices significantly for November as well as December. The petroleum prices were reduced by up to Rs 14.68 per litre for the previous month and up to Rs 10.61 per litre for the ongoing month. Therefore, inflation had touched the lowest ebb and the declining trend might continue in next month.
The government could achieve the inflation rate target of 8 percent for ongoing financial year 2014-2015 if declining trend of petroleum products prices continued in next few months.
Inflation rate based on consumer price indicator (CPI) – the main national indicator reflecting change in prices of basket of goods and services – was recorded at 3.96 per cent in November as compared to the corresponding period of last year.
According to the PBS data, the CPI based inflation was recorded at 6.45 percent during first five months (July to November) of the ongoing financial year over the corresponding period of the last fiscal year. Meanwhile, the sensitive price indicator (SPI), which gauges weekly inflation in kitchen items, decreased by 4.02 per cent in July-November 2014 against the same month of last year. Similarly, the wholesale price index (WPI) based inflation increased by 2.74 percent in the period under review.
According to the PSB figures, on month-on-month basis, it decreased by 0.5 per cent in October 2014 as compared to previous month (July) and by 1.3per cent in October 2013.
Meanwhile, the break-up of CPI based inflation (3.96 per cent) in November 2014 showed that prices of food and nonalcoholic beverages shot up 1.08 per cent, alcoholic beverages and tobacco 22.18 per cent, clothing and footwear 8.54 per cent, housing and utilities charges 5.89 per cent, healthcare charges 5.81 per cent in November as compared to same month last year. Meanwhile, charges of recreation and culture were up by 3.76 per cent, education 14.59 per cent, restaurant and hotel 7.53 per cent and miscellaneous by 5.12 per cent in the period review.
Owing to the cut in petroleum prices, the transportation fares decreased by 3.19 percent and as compared to November 2013.
