Weekly inflation eases to 21pc on fall in oil price

[LahoreEstate]

ISLAMABAD, Jan 2: The weekly inflation has decelerated from a three decade high in October after a substantial decrease in domestic oil prices in the wake of slump in international oil prices.

The inflation measured through Sensitive Price Index (SPI) eased to 21.08 per cent for the week ended on January 1, from 34 per cent in September 2008, the highest-ever, the Federal Bureau of Statistics data revealed here on Friday.

The downward trend in the weekly inflation showed some let-up in fruits, rice, ghee/oil, vegetable and flour prices in the past few weeks. The SPI recorded a decline of 0.58 per cent during the week under review over the previous week.

Analysts said that the inflation could have eased much more provided the government revised downward the oil prices, which were kept unchanged for the past one month.

The government also misled the National Assembly by increasing the gas tariff by 17 per cent. In the last session it had assured the lower house of not making any increase in the gas tariff.

A source said that the government had earned more than Rs20 billion for not passing the actual decrease in oil prices to consumers during the past one month. The earning would reach a double figures in the current fortnight ending January 15.

The SPI witnessed an increase of 20.52 per cent and 21 per cent for households in income brackets of up to Rs3, 000 and Rs3, 001 to Rs5,000, respectively. For households in the income brackets of Rs5,001 to 12,000, the increase was in the range of 21.81 per cent, and for households in the income basket of over Rs12,000 inflation registered a growth of 21.03 per cent over the same week last year.

The prices of LPG (11-kg cylinder) rose by 11.42 per cent to Rs788.38 each from Rs707.59, sugar by 4.09 per cent to Rs36.10 per kg from Rs34.68, chicken by 3.74 per cent to Rs89.97 per kg from Rs86.73 and gur by 3.24 per cent to Rs39.84 per kg from Rs38.59 during the week under review.

Gram pulse (washed) price went up by 3.02 per cent to Rs59.10 per kg from Rs57.37, veg ghee (loose) by 1.77 per cent to Rs91.96 per kg from Rs90.36, bananas 1.40 per cent to Rs34.02 per dozen against Rs33.55 and kerosene by 0.88 per cent to Rs64.18 per litre against Rs63.62.

Tea prepared price increased by 0.72 per cent to Rs8.44 per cup from Rs8.38, electric bulb 60 (WATTS) by 0.63 per cent to Rs14.40 each against Rs14.31, firewood by 0.55 per cent to Rs269.52 per 40 kg from Rs268.05 and mash pulse (washed) by 0.44 per cent to Rs75.92 per kg from Rs75.59.

The price of masoor pulse (washed) was up by 0.36 per cent to Rs128.47 per kg from Rs128.01, garlic by 0.32 per cent to Rs43.66 per kg from Rs43.52, mutton by 0.31 per cent to Rs258.73 per kg from Rs257.94 and beef up by 0.27 per cent to Rs142.97 per kg from Rs142.58.

http://www.dawn.com/2009/01/03/ebr1.htm