Food prices have increased by almost 18 per cent in March against the corresponding month last year, according to the detailed data released by the Federal Bureau of Statistics on Friday.
The consumer price index (CPI) revealed that inflation in the country went up 13.6 per cent in March, when compared with the same month of the preceding year. Additionally, prices have gone up by 1.48 per cent compared with February, according to the same measure.
Prices of perishable food items have gone up by 26.87 per cent, while rates of non-perishable food items have increased 16.81 per cent. Inflation measured by the CPI has registered an increase of 13.16 per cent since March 2010.
The Federal Bureau of Statistics (FBS) data shows that more than half the impact of inflation has been witnessed in food prices and transportation rates. Economists warn that this trend is particularly dangerous for poorer segments of the population.
Wholesale price index (WPI) data shows that prices of eggs, fresh fruit and milk have increased by 12.66 per cent, 11.7 per cent and 1.45 per cent respectively, in March when compared with the preceding month.
Experts warn that this shows that retail prices of these and other food items are likely to continue increasing in coming weeks. State Bank of Pakistan (SBP) itself has also warned that the trend of rising prices is likely to worsen, with inflation reaching 15 per cent by the end of the current fiscal year.
In its second quarterly review for fiscal year, the SBP has already raised concerns that if global oil prices continue to rise, inflation may spiral in months ahead. Experts also point towards the government’s excessive borrowing from the central bank as a reason for persistent inflation in the country.
Published in The Express Tribune, April 9th, 2011.
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