Inflation increased by 8.67 per cent in Nov

Islamabad: Led by a double digit growth in food prices, the overall inflation rose by 8.67 per cent in November 2007 over the same month last year, the Federal Bureau of Statistics (FBS) data released on Tuesday showed.

Inflation measured by CPI has been surging for the last three months on the back of higher than expected rise in food prices, particularly grains, vegetables and edible oil.

However, the 0.57pc fall in food inflation in November over October also indicated that the food prices would ease off after December which is likely to bring down the overall inflation in the remaining months of this fiscal.

The food inflation in July 2007 stood at 7.4pc, which escalated to 14pc in November 2007 — the highest ever in the last five years. However, it increased by 12.45pc when compared to same month last year.

The following food items recorded increase in prices during November included mustard oil (15.26pc), eggs (12.94pc), vegetable ghee (7.36pc), pulse masoor (6.69pc), condiments (4.82pc), spices (4.80pc), wheat (4.79pc), maida (4.62pc) and beverages (3.77pc).

Other items witnessed upward trend were wheat flour (3.49pc), cooking oil (3.37pc), cereals (2.42pc), betel leaves and nuts (2.12pc), sweetmeat and nimco (2.07pc), fish (1.86pc), rice (1.59pc), dry fruits (1.34pc), jam, tomato, pickles and vinegar (1.11pc), milk powder (1.02pc) and readymade food (0.95pc).

Non-food inflation remained around four per cent in November 2007 due to fuel prices which were kept on hold for most of the year. This capping of fuel prices cost government billions of rupees, but it helped check non-food inflationary pressures.

The statistics showed that cloth and shoes price went up by 8.67pc, house rent 8.27pc, laundry charges 8.77pc, medicare 7.94pc, education 4.27pc during the month under review.

Finance Minister Dr Salman Shah was in favour of passing on the increase in fuel price and proposed Rs17 per litre hike for making his macroeconomic indicators positive at the cost of consumers.

Inflation measured through Wholesale Price Index (WPI) also recorded highest ever growth of 12.64 per cent in November 2007. The WPI, however, surged by 1.63pc over October.