CPI inflation eases to 11.47% during Jul-Sep

Karachi: According to the data released by the Federal Bureau of Statistics (FBS), the average Consumer price index (CPI) inflation rose to 11.47% during July-September 2011 while, the Sensitive Price Index (SPI) and Wholesale Price Index (WPI) rose to 10.68% and 18.62% respectively during Jul-Sept 2011 against the corresponding period.

According to Alfalah Securities, similarly, the YoY CPI inflation eased to a 10.46% rise in Sep 2011 from 11.56% recorded in August 2011. A decline in inflation was witnessed in September mainly due to the change of base year from FY01 to FY08 while also increasing the items and cities covered for CPI calculation. The lower inflation is giving room to the State Bank to cut discount rate by 100bps. However on MoM basis, the Consumer Price Index reached to a level of 158.5 in Sept 2011 as compared to 156.88 in Aug 2011, registering an increase of 1.03%. The MoM increase in inflation is due to the recent floods in Sindh which has caused prices of food items to rise significantly.

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