Inflation rose to 10.3% in july whic is the highest in the past fove and a half years. Inflation measured by Consumer Price Index, rose to double digits from 8.9% the preceding month.
the Pakistan Bureau of Statistics said on Thursday. During the same month last year, inflation stood at 5.84pc. It was the highest inflation rate in the past 68 months. Last time in November 2013, the inflation had soared 10.9%. In July last year, the pace of inflation was 5.83%.
The increase in prices of petroleum products over the past few months, followed by an increase in electricity and gas tariffs fuelled the total inflation. The government also introduced certain tax measures, the cumulative impact of which dragged the overall inflation to double digits. The rupee devaluation against US dollar also led to inflation, over the past few months.
The government has projected an inflation target of 11pc to 13pc for the fiscal year 2019-20, compared to 7.3pc recorded in 2018-19. Price levels, perked up in the first month of the current fiscal year, appear to have been driven by a spike in non-food inflation in July.
Food inflation was up 9.2pc on an annual basis, but surged 1.5pc on a monthly basis. Prices of non-perishable food items rose by 7.85pc and those of perishable products by 8.06pc in July.
The PBS on Thursday released the inflation reading on the basis of old methodology.
There was an increase in prices of both food and non-food items. Of the 12 groups, the prices of five groups surged into double-digits in July over a year ago.
The maximum increase of 35.8% was recorded in the alcoholic beverages and tobacco group. Prices of the housing, water, electricity, gas and fuel group rose 12.8% in July over a year ago.
Prices of the furnishing and household equipment group increased over 10%, transport group 14.7% and miscellaneous group 11.6% in July. Prices of the clothing and footwear group increased 7.4%.
Gas tariffs surged 142%, garlic prices 74.9%, onion 58.83%, pulse moong 47.6%, gold 36%, CNG 33.3%, sugar 30.7%, cars 25.54%, cigarettes 24.7%, pulse mash 22.3%, petrol 22.5%, potatoes 21%, pulse gram 12.3%, high-speed diesel 12.3%, beef 12%, electricity 11.33%, motorcycles 10.7%, wheat flour 10.4%, bread plain 9.33%, cement 10.1%, kerosene oil 9.9% and rent 6.2%.
