Karachi: CPI inflation rose to a high of 11.27%YoY in April 2012 as against 10.8% in the previous month while average inflation in the July- April period stood at 10.84%.
According to Alfalah Securities Limited, the hike in inflation is attributed to high petroleum products and food prices. According to PBS data, during the period under review prices of furnishing and household equipment maintenance increased by 33%, clothing and footwear 32%, restaurant and hotelling 32%, transportation charges 32%, education expenses 25%, alcoholic beverages and tobacco 18%, housing water, electricity, gas and fuel by 18%, recreation and culture activity charges by 12% and food and non-alcoholic beverages by 10.7% over corresponding month of last year.
The core inflation measured by non-food non-energy CPI (Core NFNE) increased by 10.8% YoY and on month-on-month basis, it increased by 1.4% in April 2012. Rising food prices were mainly contributed by 77% hike in tomato prices, 22% hike in potatoes, 12% in farm chicken, 11% in fruit prices and fresh vegetables by 4.3%, cooking oil by 3%. Alfalah Securities Limited expects the inflation to remain below the target of 12% for FY12 while the discount rate are expected to remain unchanged in the upcoming monetary policy, given the current economic scenario.