Monthly inflation recorded at 3.41 percent in August

KARACHI: Consumer price inflation clocked in at 3.41 percent year-on-year in August as prices of perishable food items increased during the month.

Pakistan Bureau of Statistics (PBS) data showed on Tuesday that consumer price index (CPI) inflation was recorded at 2.9 percent in July and 3.6 percent in August 2016.  In August, CPI inflation inched up 0.19 percent month-on-month as compared to an increase of 0.3 percent in July and a decrease of 0.3 percent in August 2016.

CPI was registered at an average 3.16 percent in July-August as compared to 3.84 percent in the same period during the last fiscal year and 1.83 percent in the preceding fiscal year.

Prices of perishable foods rose 5.25 percent in August over the same month a year earlier. Other prime contributors to increase in CPI inflation included health charges (up 12.47 percent year-on-year), education fees (rising 10.85 percent year-on-year), and charges of housing, water, electricity, gas and other fuels (increasing 5.3 percent year-on-year). 

PBS data further showed that prices of onion rose 44.08 percent year-on-year in August, followed by chicken (14.15pc), rice (13.95pc), fresh fruits (13.65pc), tea (13.14pc), potatoes (9.74pc), meat (7.65pc), honey (6.25pc), readymade food (4.77pc) and vegetable ghee (4.42pc).

Prices of pulse mash fell 27.13 percent year-on-year in August, followed by pulse gram (19.87pc), tomatoes (19.85pc), pulse masoor (18.38pc), pulse moong (18.21pc), sugar (15.56pc) and besan (14.81pc).

In August, prices of non-food items, including drugs and medicines, education, tailoring, doctor consultation, rental house, cleaning and laundry, medical equipment, construction wages rate, motor fuel and personal care increased 18.53, 10.85, 8.58, 7.87, 7.19, 7.13, 6.59, 6.56, 6.41 and 6.12 percent year-on-year, respectively. Prices of motor vehicle accessories, however, decreased 1.09 percent year-on-year in August. 

Major food items, which saw surge in prices in August over July, included onion (33.88pc), tomatoes (25.74pc), sugar (6.93pc), eggs (2.22pc), meat (1.92pc), potatoes (1.91pc), rice (1.60pc) and fish (1.06pc).

On month-on-month basis, prices of fresh fruits slid 5.71 percent in August, followed by chicken (5.58pc), pulse mash (2.66pc), pulse masoor (2.03pc), pulse gram (1.96pc), pulse moong (1.84pc), besan (1.66pc) and betel leaves and nuts (one percent).

Prices of non-food items, including construction wages rate and personal care, were up 1.17 percent and 0.73 percent in August over July, respectively. Motor fuel price, however, was down 1.08 percent month-on-month in August. 

PBS said wholesale price index (WPI) inflation increased one percent year-on-year in August as compared to an increase of 0.7 percent a month earlier and an increase of 3.5 percent in August 2016. 

WPI inflation increased 0.3 percent month-on-month in August as compared to a decrease of 0.2 percent a month earlier. It was flat in August 2016.

Core inflation, measured by non-food non-energy CPI, increased 5.5 percent year-on-year in August as compared to an increase of 5.6 percent in the previous month and 4.6 percent in August 2016. On month-on-month basis, it increased 0.1 percent in August 2017 as compared to increase of 0.7 percent in previous month, and an increase of 0.2 percent in the corresponding month of last year.