The government’s apathetic decision to pass on the massive increase in petroleum prices to consumers last month has boomeranged, as the inflation based upon the consumer price index (CPI) increased by 11.3 percent on year-on-year basis in April 2012 as compared to 10.8 percent in the previous month of March.
Due to the increase in POL prices the CPI has increased to the highest level in 14 months with inflation increasing by 1.8 percent in April 2012. The hike in consumer prices and its expected increasing momentum in the coming months have put at rest all boastful official claims to curb inflation. The government’s decision not to share decline in POL prices with the people will lead to further hike in prices of consumer items.
According to the data of the Pakistan Bureau of Statistics (PBS), core inflation measured by non-food non-energy CPI (Core NFNE) increased by 10.8 percent in April 2012 as well as in March 2012(YoY) and by 9.5 percent in April 2011. Core NFNE inflation on MoM basis increased by 1.4 percent in April 2012 as compared to 1.0 percent a month earlier and 1.4 percent in April 2011.
Core inflation, measured by 20 percent weighted trimmed mean CPI (Core Trimmed) increased by 11.0 percent in April 2012 and by 10.5 percent in March 2012 (YoY) which increased by 12.0 percent in April 2011. Core Trimmed inflation has increased by 1.3 percent on MoM basis in April 2012 compared with 0.8 percent in March 2012 which increased by 1.0 percent in April 2011.
SPI inflation on YoY basis increased by 7.5 percent in April 2012 compared with 6.1 percent a month earlier and 14.2 percent in April 2011. On MoM basis, it increased by 1.7 percent in April 2012 as compared to an increase by 1.5 percent a month earlier and an increase of 0.3 percent in April 2011. WPI inflation on YoY basis increased to 3.8 percent in April 2012 compared with 4.5 percent a month earlier and 24.9 percent in April 2011. WPI inflation on MoM basis increased by 1.8 percent in April 2012 as compared to an increase of 0.7 percent a month earlier and an increase of 2.5 percent in April 2011.