SPI inflation 18.05 percent up over last year

[LahoreEstate]

ZAHEER ABBASI
ISLAMABAD (March 28 2009): The weekly inflation, measured through Sensitive Price Indicator (SPI) swelled to 18.05 percent on week ending March 26, 2009 over the same period of last year, according to Federal Bureau of Statistics (FBS). Figures released by FBS here on Friday showed a marginal reduction in inflation during the week.

The inflation significantly came down in the regional countries after decline in the commodity prices in the global market, but people in Pakistan could barely benefit from it owing to the prevailing market system. According to economists, people in Pakistan have least benefited from the falling prices in the global market mainly because of the market forces that never allow the market to move both ways.

The moves of the market in Pakistan, they believe, are unidirectional, which means that when the prices are on the rise in the global market their impact is immediately passed on to the consumers, but their relief in case of decline is never passed on.

They said that commodities prices declined to one-fourth in the global market, but the impact was not passed on in the domestic market. With this increase in the Sensitive Price Indicator (SPI), the dearness was recorded 19.15 percent for families having up to Rs 3000 monthly income, 19.60 percent to families bracketed in Rs 3001-5000 monthly income, and 20.12 percent for families in Rs 5001 to Rs 12000 group. The inflation was recorded 17.41 percent for families having monthly income over Rs 12,000.

The SPI bulletin, based on 53 essential commodities collected from 17 urban cities, showed that prices of 18 commodities increased during the week, 13 declined, while 22 remained stable.

The items which registered increase in their prices included chicken (farm), electricity bulb (60 watts), sugar, bananas, bread plain (middle size), lawn, voile (printed), wheat (average quality), mash pulse (washed), curd, gur, vegetable ghee (loose), mutton, cooked dal, wheat flour (average quality), cooked beef, milk (fresh) and beef.

The items which recorded decrease in their average prices during the week under review included onions, tomatoes, gram pulse (washed), garlic, potatoes, masoor pulse (washed), egg hen (farm), rice basmati (broken), rice (Irri-6), red chillies, moong pulse (washed), mustard oil and LPG (11 kg cylinder).

The items with no change in their average prices during the week under review included milk (powdered), vegetable ghee (tin), cooking oil (tin), salt (powdered), tea (packet), tea (prepared), cigarettes, coarse latha, shirting, sandal (gents), sandal (ladies), chappal, kerosene, firewood, match box, washing soap, bath soap, gas charges (up to 3.3719 mmbtu), electricity charges (1 100 units), petrol, diesel and telephone local call.

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