The annual rate of inflation rate rose to 3.8% in November in relation to the preceding year’s 4.2%, according to Pakistan Bureau of Statistics (PBS) on Thursday.
According to the statistics shared by PBS, average CPI inflation from July to November was clocked at 3.92% as compared to the corresponding year of 2015.
Although, annual inflation showed a lower trend during the month of November in relation to the previous month’s statistics, the average CPI inflation revealed an uptrend as compared to the statistics of the same month last year.
On a month-on-month basis, food inflation increased 0.2% in November against the 0.9% increase in previous month and 0.1% increase in corresponding month of last year.
The rise in the inflation rate is in response to a hike in the prices of food and energy, as measured by Consumer Price Index (CPI) that takes the prices of nearly 500 commodities every month to compare the rise or fall on a month-on-month and year-to-year basis.
According to the data PBS released on Tuesday, inflation was recorded at 3.92% during the first five months of the fiscal year 2016-2017 against 1.86% in the same period of the fiscal year 2015-2016.
The core inflation that excludes energy and food prices showed an upward trend with 5.3% increase during the month of October, following a consecutive rise in the preceding two months.
The continuous hike in inflation suggests that despite the expectations of State Bank of Pakistan about inflation being in manageable limits, the inflationary pressure seems to show a stable build up over the last few months.
According to the minutes of SBP’s second last meeting on Monetary Policy, the rising core inflation is a result of increased cost of house rents, healthcare, and personal equipment. The committee further shed light on the increased price of cotton cloth as a contributing factor in the rising inflation.