Consumer Price Index falls to 11.56 percent in August 2011

KARACHI: The Consumer Price Index (CPI) fell to 11.56 percent on yearly basis in August 2011, which is far less the consensus forecast and July reported CPI of 13.89 percent, Federal Bureau of Statistics revealed Wednesday.

The decline is primarily attributed to high base effect of last year kicking in due to index rising on account of floods last year. Moreover the redistribution of weights away from foods and beverages in the newly composed CPI basket also caused the numbers to decline.

The Consumer Price Index (CPI), during the month of August 2011 registered an increase of 1.40 percent over July 2011.

The Sensitive Price Indicator (SPI) during August 2011 increased by 0.83 percent while the Wholesale
Price Index increased by 0.55 percent during the month as compared to July 2011.

An analysis of data shows that CPI, SPI and WPI of July-August 2011-12 have increased by 11.99 percent, 12.34 percent and 19.47 percent over July to August 2010-11 respectively.

The CPI, SPI and WPI of July to August 2010-11 have increased by 12.59 percent, 13.89 percent and
17.85 percent over July-August 2009-10 respectively. The inflation rate during the month of August
2011 registered an increase of 11.56 percent over the same period of last year whereas CPI during
July-August 2011-12 increased by 11.99 percent over July-August 2010-11.

During the month of August 2011 over August 2010 the trimmed core inflation has been observed as 12.5 percent while it was 10.9 percent during the August 2010 over August 2009.

During the period under review the non-food and non-energy core inflation has been observed as 10.1 percent, while it was witnessed at 10.3 percent during August 2010 over August 2009.

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