CPI measures inflation at 8.6pc during current year

ISLAMABAD: Inflation measured by the Consumer Price Index (CPI) was recorded at 8.6 per cent during July-April 2020-21 against 11.2 per cent during the same period last year.

According to the Economic Survey 2020-21, due to the government’s measures for price stability, inflation in perishable food items increased 0.1 per cent against an exorbitant increase of 34.7 per cent during the same period last year.

Non-perishable food items were the main contributory factor in the rise in the food inflation in the food and non-alcoholic beverages group, as it was recorded at 16 per cent against an increase of 12.4 per cent during the same period last year.

Among the non-perishable food items, upward pressure came from the poultry group (chicken and eggs), followed by the staple group (wheat, wheat flour and edible oil). The increase in the poultry group may be attributed to viral disease which caused supply side risks.

Wheat prices rose by more than 24 per cent in April 2021 over April 2020 due to supply disruption. However, there was a decrease of 9 per cent over March 2021, mainly due to government efforts for the smooth supply of wheat.

One of the measures was the timely release of wheat in the provinces by the procurement agencies and the provision of the commodity via utility stores and fair price outlets which managed to ease price pressures. Regarding the increase in the prices of edible oil, palm oil and soybean prices have been on a steep rising trajectory in the international market since June 2020, amid sharp contractions in global inventory levels due to weather-related concerns in the major producing areas.

housing, water, electricity, gas and other fuels have recorded an increase of 5.7 per cent during July-April FY2021 as against 7.1 per cent during the same period last year. It has a weight of 23.6 per cent thus any untoward movement directly affects the vulnerable segments of the society.