Inflation slows as power tariff hike delayed

Pakistan’s inflation slowed in May after the government delayed a planned increase in power tariffs.


Express June 11, 2010

KARACHI:

Pakistan’s inflation slowed in May after the government delayed a planned increase in power tariffs, reducing pressure on the State Bank to increase borrowing costs next month.


Consumer prices rose 13 per cent from a year earlier after climbing 13.26 per cent in April, the Federal Bureau of Statistics said on its website on Friday.


Government delayed a 6 per cent scheduled increase in power tariffs in May even after the government agreed with the International Monetary Fund (IMF) it would increase rates and end subsidies.


Inflation may slow further in June since domestic fuel prices were reduced by an average 8 per cent this month.



COMMENTS (1)

Meekal Ahmed | 14 years ago | Reply This is useful information but refers only to the "head-line" rate of inflation. It would be good to know what the "core" rate of inflation is which strips out volatile elements (food and energy) and tells you what is really happening to inflation. If headline is easing, is the core rate accelerating? That would be a source of concern.
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