Affectation measured by the Consumer Price Index (CPI) has been at its loftiest position since January 22, driven by a record rise in energy prices and food rates undermining before earnings. In January, affectation was recorded at 13pc, while the alternate-loftiest increase of12.4 pc was noted in February 2020.
ISLAMABAD: The prices of consumer goods slightly went up to12.7 per cent in March from12.2 pc from the former month on the reverse of an increase in prices of perishable products, according to the Pakistan Bureau of Statistics (PBS) data released on Friday.
Prime Minister Imran Khan had reduced canvas prices in March. Firmed at the current position for the month of March, the canvas prices will continue at this position until June 30. Deals duty on all POL products has been reduced to zero, which bring the duty body Rs45bn in March to give relief to consumers.
Also, the decision to reduce Rs5 in electricity charges will reduce bills for consumers. These factors are likely to containnon-food affectation in the country. The time-on- time (YoY) increase in affectation in recent months is substantially driven by soaring prices of energy, electricity, house rent, transport andnon-perishable food particulars.
The Ministry of Finance in its March update said the global frugality was facing three challenges including fiscal warrants, commodity prices and force- chain dislocations due to the ongoing war between Russia and Ukraine. These challenges have fueled global affectation and downgraded the growth outlook in utmost countries, it added.
According to the report, the necessary condition to bring back affectation is to limit farther month-on-month ( Mama) price increases as much as possible. Therefore, realising the fact, the government programs continuously concentrated on limiting these yearly increases.
Presently, due to increased geopolitical pressures, there are prospects about a farther increase in transnational goods prices. The government is taking possible measures to contain the current pass-through of this increase into domestic consumer prices, especially through relief packages.
The PBS data show that food affectation is still on the advanced side in the last nine months; in civic areas, it shot up to14.5 pc time-on- time in March and1.8 pc month-on-month, whereas the separate growth in prices in pastoral areas was15.5 pc and2.3 pc.
Still, PBS data showed that in pastoral areas,non-food affectation was advanced than that recorded in civic areas — a reversal of the trend where civic areas generally witness advanced affectation.
In Pakistan, the average affectation between July-March rose to10.77 pc time-on- time. In 2020-21, periodic CPI affectation was recorded at8.90 pc against10.74 pc the former time.
At the same time, prices of meat, fruits and vegetables also registered a patient increase in major civic centres and pastoral areas.
Non-food civic affectation increased by10.4 pc YoY and0.1 pc Mama, whereas in pastoral areas it rose by12.5 pc and0.2 pc, independently. The increase innon-food affectation was substantially driven by rising canvas prices in March.
Food particulars that saw an increase in prices in March as compared to the former month, included funk33.63 pc, fruits15.17 pc, mustard canvas8.73 pc, vegetable ghee8.32 pc, onions7.01 pc, cooking canvas5.05 pc, gram whole2.11 pc, tea1.92 pc, milk1.52 pc and besan0.91 pc.
In civic areas, the prices of tomatoes declined by36.53 pc, eggs14.75 pc, wheat4.89 pc, potatoes3.68 pc, seasonings & spices2.38 pc, gur1.10 pc, wheat flour1.08 pc and sugar1.02 pc, independently. A analogous trend was noticed in the prices of essential food particulars in the pastoral areas.
The core affectation in civic areas was8.9 pc in March against7.8 pc the former month. In pastoral areas, the corresponding increase was10.3 pc against9.4 pc.
