Pakistan Agriculture News

High oil prices push inflation up to 3.8pc

ISLAMABAD –  Inflation has shown increase during October due to surge in oil prices as it recorded at 3.8 percent during last month over a year ago.
The inflation measured through Consumer Price Index (CPI) has recorded at 3.8 percent during October against same month of the last year, according to the latest data of Pakistan Bureau of Statistics (PBS) released on Wednesday. The inflation has recorded increase due to continuous hike in petroleum products prices.

The inflation is likely to fuel in the month to come, as the government once again has increased oil prices for November. The government has increased the price of petrol by Rs2.49 per litre. Meanwhile, high speed diesel price was enhanced by Rs5.19 per litre, light diesel oil by Rs3 per litre and kerosene oil price increased by Rs5.19 per litre for November.

The government believed that inflation would remain under control despite increase in oil prices . “Inflation rate is still under the target,” said an official of the Ministry of Finance. He further said that the government had kept the inflation target at 6 percent for the ongoing fiscal year 2017-18.

According to PBS, the CPI based inflation has recorded at 3.5 percent during first four months (July-October) of the current fiscal year. The Sensitive Price Indicator (SPI), which gauges rates of kitchen items on weekly basis, has increased by 0.89 percent. Similarly, the wholesale price index (WPI) based inflation enhanced by 1.39 percent in the period under review.

The break-up of inflation of 3.8 percent showed that food and non-alcoholic beverages prices have increased by 3.24 percent. Similarly, health and education charges went up by 10.57 percent and 11.46 percent, respectively. Similarly, prices of utilities (housing, water, electricity, gas and fuel) increased by 4.88 percent in last month.

Meanwhile, the prices of alcoholic beverages and tobacco went down by 16.21 percent. Price of clothing and footwear increased by 3.79 percent and furnishing and household equipment maintenance charges 3.06 percent. Recreational charges and those related to culture went up by 0.32 percent in the period under review, while amounts charged by restaurants and hotels by 6.57 percent in October 2017 as compared to the same month last year.

In food commodities, prices of tomatoes increased by 31.43 percent, betel leaves and nuts by 2.57 percent, potatoes 2.25 percent, eggs 2.04 percent, onion 1.9 percent and gram whole prices surged by 1.59 percent. Meanwhile, in non-food commodities, prices of kerosene oil enhanced by 3.9 percent, education charges by 3.7 percent, motor fuel 1.91 percent and house rent went up by 1.34 percent during October as against September.

According to the PBS figures, price of pulse mash decreased by 5.11 percent, pulse moong 2.04 percent, fresh vegetables 1.9 percent, and sugar price down by 1.11 percent during October as compared to the September.


Source The Nation, IMRAN ALI KUNDI