Despite several challenges, the country’s economy has been performing well and is on an upward trajectory with consistent positive indicators over a period of time.
Inflation is the one of the major economic indicators, which has been falling continuously. Headline inflation for October 2015 was registered at 1.6 percent, the lowest in the last 12 years.
According to a Finance Ministry official, bringing the inflation down was the one of the targets of the current government and termed it a positive sign for the country’s development as well as for the people.
Increasing inflation is a universal phenomenon. In the most developed countries, inflation continues to increase such as its rate in 1.8 percent in the United States, 1.80 percent in China, 2.9 percent in Australia and 3.04 percent in Japan while it is 7.08 percent in India.
Inflation rate averaged in the country at 7.99 percent from 1957 till date. It was recorded at all time high of 37.81 percent in December 1973 and record low of – 10.32 percent in February, 1959.
Since the beginning of current financial year (in July), Consumer Price Index (CPI) inflation has been below 2 percent. In September 2015, it was recorded at 1.3 percent while it was 5.82 percent in October 2014.
Average inflation of four months (July-October 2015) stood at 1.65 percent as against 7.09 percent in the same period last year.
Besides, prices of potatoes were down by 55 percent, cooking oil 17 by percent, and rice, chicken and eggs by 16 percent each, and oil price by 13 percent than those in the same month last year.
All major indicators of economy are pointing to the fact that economy has begun to show signs of revival and moving on the right track.
The official said that taxes and documentation of economy would cotinue while the government would take necessary measures to facilitate exporters.
The government is working with the business community to achieve export targets, on a plan to improve power and gas supplies, he added.
The government is also making allout efforts to enhance oil and gas exploration activities in the country through investment friendly policies.
