|
Inflation at
all-time high of 17.21pc
ISLAMABAD, May 12: Inflation surged to an all-time high of 17.21 per
cent in April on the back of spiralling food and energy prices, but
the coalition government is yet to initiate any measures to bring it
down.
Rising demand and falling supply of food items particularly wheat
flour pushed the prices to unprecedented level, eroding the
purchasing power of middle and lower income class.
Figures issued by the Federal Bureau of Statistics showed that food
inflation, measured through the Consumer Price Index (CPI),
ballooned to record 25.50 per cent in April, the highest not only in
the country but in the entire region. In March the food inflation
stood at 20 per cent.
In the food basket, price of non-perishable food items witnessed an
increase of 27.33 per cent and perishable items 14.05 per cent in
the month under review, reflected that price spirals were not
seasonal as industrial goods have also witnessed tremendous
increase.
All food items including eggs, fresh fruits, wheat flour, chicken
farm, potatoes, wheat, rice, pulse gram, besan, onions, maida,
cooking oil, pulse masoor, milk products, milk fresh, cereals, meat,
ready-made food, gram whole and dry fruits saw unprecedented hikes
in April.
Dr Pervez Tahir, former Chief Economist, told Dawn that the
government would have to ensure at least provision of subsidised
flour, pulses, meat and ghee etc., to the poverty stricken segment
of society through utility stores.
He suggested the subsidy should be given on these essential food
items.
He, however, agreed that inflation was a worldwide phenomenon and
could not be checked in a short time.
The core inflation - non-food and non-energy - also swelled to 10.8
per cent in April, the highest in the past couple of years as
against 5.6 per cent last year on account of rising house rent and
medicare sub-indices.
The house rent increased by 11.35 per cent and medicare by 7.44 per
cent during the month under the review.
The non-food inflation also spiked to 9.6 per cent in April on the
back of a four-time increase in the domestic petroleum prices.
Dr Tahir asked for reducing the taxation component on oil to reduce
the impact of rising prices to the consumers.
For 2007-08, a 6.5 per cent annual inflation had been projected.
However, the inflation in the first 10 months reached 10.27 per
cent, up from 7.89 per cent during the same period last year.
Dr Kaiser Bengali, known economist, said that the recent decision of
the finance ministry to reduce non-development budget would have a
positive impact on borrowings from the central bank. He said the
reduction in money supply would also have an impact on over all
inflation.
Transportation charges recorded an increase of 17.92 per cent in
April and education 4.70 per cent.
The wholesale price index (WPI), the most commonly used measure to
monitor the cost of production, rose to 23.50 per cent in April,
which was a record high. It indicates an increase in prices of 425
items at wholesale level.
The average weekly inflation of essential commodities witnessed an
increase of 24.94 per cent in April over the last year.
| |
|
|
