Pakistans Inflation Rate as July 2012

Posted by Observer on August 9, 2012 Leave a comment (0) Go to comments 1 A common man in Pakistan is finding increasingly difficult to survive in this era of highly increasing prices if general items. A person from middle income group bracket and that from lower income group bracket is finding difficult to gain access to even the basic necessities a family needs for survival. Items like food, education, medical care, transportation have all seen a hike upwards in their prices. The financial lurch that has gripped Pakistan leaves nominally fixed income earners and pensioners in a complete distress who, according to Pakistan Bureau Statistics data are unable to satisfy their need for basic commodities. The consumer price index (CPI) was recorded to be 9.6 percent in July 2012 compared to 11.3 percent in June and 12.4 percent in July 2011. Comparison done on a monthly basis saw inflation going down by 0.2 percent in July whereas increase of 0.04 percent in relation to the previous month and yet an increase of 1.3 percent by July 2011. On the other hand inflation recorded by the sensitive price indicator (SPI) recorded inflation at 7.76 percent while the wholesale price index (WPI) based inflation was 7.22 percent a jump from 6.4 percent recorded last month. On the other hand inflation measured by non-food, non- energy CPI (Core NFNE) saw an upward trend with inflation rising by 11.3 percent in July 2012 compared to 11.4 percent in June 2012 and 9.5 percent in July 2011. The inflation has been on an increase since the year 2006 and has said to hit the record with being set at 25 percent in the October 2008. According to the data collected by economists, analysis show that for every one percent increase in inflation more and more people are falling below the poverty line, especially because poor people are said to be highly sensitive to change in prices of staple food items. The latest data collected in this regard has reported the following increases in prices: food and non alcoholic beverages 8.73 percent, tobacco and alcoholic beverages 18.11 percent, clothing and footwear 15.83 percent, medical care15,59 percent, transport 12.57 percent, entertainment and recreation18.57 percent and hotel and restaurants charges increased by 10.31 percent in July 2012 compared to July 2011. This data was covered retail prices of 374 items over 35 major cities in Pakistan. As for fruits and vegetables onions saw an increase of 20.82 percent, tomatoes 16.60 percent, chicken by 12.14 percent, potatoes by 11.85 percent, fresh vegetables by 11.31 percent, fresh fruits by 5.15 percent, cooking oil by 3.86,eggs rose by 3.04 percent while milk price saw an increase of 2.03 percent over June. However some food items did saw a decline in their prices like tea by 5.05 percent, mash pulse 1.45 percent, masoor pulse 1.23 percent , sugar 0.73 percent and gram whole decreased by 0.56 percent compared to the previous month Muttahida Qaumi Movement (MQM) coordination committee has filed an appeal to the transport authority to reduce the fares keeping in mind the recent decline in prices of LPG, CNG, and petroleum. However it cannot be denied that petroleum, LPG and CNG prices are yet being said to be driven up. They have also registered request for the food authority to reduce their prices to

provide relief to common man. It has been increasingly obvious that with the current situation prevailing in the country a common man is frustrated with his inability to satisfy his family needs and this also contributes to the worsening law and order situation in Pakistan.

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Pakistan year-on-year CPI inflation rises 7.7 per cent

November 2, 2012 by Reuters

KARACHI: Pakistans consumer price index (CPI) inflation rose by 7.7 per cent in October from a year earlier, the Pakistan Bureau of Statistics said on Friday. The year-on-year rate in September was 8.8 per cent. On a month-on-month basis, the CPI increased by 0.4 per cent compared to 0.8 per cent in September, according to the bureau.

Pakistan Inflation Rate The inflation rate in Pakistan was recorded at 7.70 percent in October of 2012. Historically, from 2003 until 2012, Pakistan Inflation Rate averaged 10.6 Percent reaching an all time high of 25.3 Percent in August of 2008 and a record low of 1.4 Percent in July of 2003. Inflation rate refers to a general rise in prices measured against a standard level of purchasing power. The most well known measures of Inflation are the CPI which measures consumer prices, and the GDP deflator, which measures inflation in the whole of the domestic economy. This page includes a chart with historical data for Pakistan Inflation Rate.

9.5pc inflation target unlikely: PIDE survey

By: Imran Ali Kundi | August 18, 2012

ISLAMABAD - Pakistan Institute of Development Economics (PIDE) in its recent survey report revealed that government is unlikely to achieve inflation target rate of 9.5 per cent set for the ongoing financial year 2012-13, as it would remain at higher side in the months to come. The government has set 9.5 per cent inflation target for the current financial year (2012-13). However, the PIDEs survey revealed that there has been strong upward pressure on inflation in Pakistan because of worse energy crisis and unrestrained government borrowing from the central bank. The survey results indicated that expected inflation would remain about 13 per cent for the current financial year (2012-13). About 92 per cent of the respondents are of the view that in the current year (2012-13) inflation will be higher than the target rate (9.5 percent) and only one per cent of the respondents are of the view that it will remain the same i.e. 9.5 per cent. According to the survey 38.1 per cent respondent think that bad governance is the major cause of high inflation. Other important causes are food prices (23.8 per cent), oil prices (22.8) and fiscal deficit (19.5 per cent), followed by money supply, utility prices and international inflation. PIDE Inflation Expectations Survey reveals that public is expecting high inflation and high unemployment in the coming months. Persistence of high inflation and policy credibility has ignited the expectations of high inflation. According to respondents, persistent high inflation, policy credibility and budget are the major sources of public expectations about future high inflation. Respondents think that bad governance, food prices, oil prices and fiscal deficit largely drive inflation in Pakistan.

According to the survey results only monetary policy is not sufficient to meet the inflation target of 9.5 per cent it requires coordination of fiscal policy. Survey revealed that the growth rate should not increase. A vast majority of respondents are considering that current economic policies are not useful to enhance economic growth. According to 28.2 per cent respondents, current inflation is cost push whereas14.1 per cent of the respondents think that it is demand-pull and 7.1 per cent consider it structural in nature. A majority of the respondents (50.6 per cent) think that current inflation is because of all three i.e. demand pull, cost push and structural. In response to a question regarding which policy is effective in controlling inflation, 52.4 per cent respondent think that monetary policy is effective in controlling inflation, while 51.8 per cent are in favour of fiscal policy. A vast majority of respondents (48.8 per cent) believe that money supply is the best instrument to control inflation in Pakistan. Pak rupee (Rs) is continuously under pressure since last several months. According to the results of survey 59.6 per cent of the respondents are expecting that rupee will depreciate in the next six months. About 31 per cent of the respondents are expecting that exchange rate will appreciate, while remaining are of the view that there will be no change in it in the next six months. The survey results indicate that respondents are pessimistic about economic growth rate in the next six months. About 44 per cent of them are of the view that the growth rate will remain the same in the next six months, whereas 33.3 per cent are expecting lower growth in the coming months and 22.6 per cent are expecting higher growth. Majority of the respondents (78.6 per cent) considered that current economic policies are not useful to enhance economic growth and 14.3 per cent of the respondents are not sure whether current policies are effective or not. A vast majority (61.9 per cent) of the respondents are expecting higher unemployment in the next six months. This report is the outcome of survey conducted in PIDE during June 2012. Participants of the survey are economists and businessmen from all over the Pakistan.