Islamabad (October 01, 2018): Pakistan’s annual inflation eased to 5.12 per cent in September from 5.84 per cent a month earlier, the state Bureau of Statistics said on Monday.
On a month-on-month basis, prices fell 0.06 per cent in September. The fall in inflation was mostly driven by a dip in the cost of vegetables.But Pakistan’s central bank warned over the weekend rising oil prices and four currency devaluations since December were likely to push up underlying inflation.
The State Bank of Pakistan raised key rates by 100 basis points on Saturday to ease inflation fears and plug a widening current account gap.Earlier, the inflation rate of Pakistan had surged to 5.84% in August, while, it was 5.83% in July.
It is the highest rate of core inflation in the past three years and ten months. Last time, the core inflation stood at 7.8% in October 2014.
The key inflation indicator has been increasing due to surge in prices of both food and non-food items. A steep decline in the value of the rupee since December has also shaken an overall stable inflationary environment.Average inflation, measured through the sensitive price index, crawled up 3.42% in July-August as against negative 0.24% in the previous year.It was the second consecutive month when inflation remained around 5.8%. The CPI tracks the prices of around 480 commodities every month in urban centers across the country.