Inflation in the country in January, as gauged by Consumer Price Index (CPI), has eased to 7.91 percent compared to 9.2 percent in Dec last year.
“The reading is lowest since Oct 2013,” viewed Topline analyst Zeeshan Afzal.
A monthly account shows that the price hike stood 0.48 percent as against 1.32% in December despite quarterly revision of housing index.
“Our estimations suggest falling perishable food and stable local fuel prices caused the low reading,” Afzal said.
On year on year basis, high base of January 2013 also played its part.
During 7MFY14, average inflation stands at 8.75% compared to 8.3% in corresponding period and 7.36% in FY13.
The rise, the analyst said, was attributable to recent electricity tariff increase and local currency depreciation.
“For FY14, we foresee CPI around 9.5%, down by 50bps from our previous estimations,” said he.
