Food prices, 32.05 percent higher in June, 2008 over the same month of last year, were major factor to the inflation that could draw more people towards poverty. The prices of food and beverages surged by 2.47 percent in June over May, 2008.
The rise in Wholesale Price Index (WPI), 30.62 percent in June against 7.30 per cent for the last year, as reported by the FBS, indicated more inflation in the months ahead. The surge in CPI inflation was recorded at 31.53 percent in June 2008 against 7 percent in the same month of last year, while increase in CPI inflation for the whole year was 5.5 percentage points higher than the set target of 6.5 percent for the year. The CPI inflation in 2006-07 was only 7.77 percent.
Further analysis of the data showed a substantial increase in the prices of food, fuel and lighting, education, medicare and house rent. The prices of food and beverages rose by 32.05 percent in June 2008, house rent 12.39 percent, fuel and lighting 11.38 percent, household furniture and equipment's 10.43 percent, transport and communication 24.91 percent, clearing laundry and personnel appearances 17.74 percent and medicare expenses up by 14.16 percent over June 2007.
AMONG FOOD AND BEVERAGES: the price of potatoes increased by 17.11 percent in June 2008 over same period of last month, spices 12.38 percent, tea 11.31 percent, sugar 7.86 percent, onions 7.60 percent, pulse masoor 7.46 percent, milk powder 5.58 percent, wheat 4.54 percent, beverages 4.01 percent, vegetable ghee 3.97 percent, cooking oil 3.92 percent, milk fresh & honey 3.64 percent each, milk products 3.31 percent, bakery & confectionery 3.12 percent, wheat flour (3.05 percent, meat 2.97 percent and rice prices increased by 2.96 percent in one month over May 2008.
Among transport & communication group, air fare went up by 14.82 percent, CNG filling charges 14.41 percent, diesel & petrol 10.03 percent each, service charges 3.15 percent, vehicles 2.98 percent, tyre & tube 1.42 percent and transport fare/charges increased by 1.16 percent. Besides, match box price was up by 35.17 percent, kerosene 18.14 percent and LPG price by 1.41 percent.
Education expenses were up by 9.23 percent with 4.07 percent increase in text books prices 2.20 percent in stationery. According to WPI, fuel, lighting and lubricants expenses were up by 48.56 percent, building materials 38.24 percent, food 30.16 percent, raw materials 22.12 percent and manufacturers price increased by 12.17 percent in June 2008 over corresponding month of last year.