July inflation up 12.34 pct

Consumer price index (CPI), a key indicator of inflation, rose 12.34 percent in July from a year ago, the Federal Bureau of Statistics said on Wednesday. The rate was within analyst expectations.
A Reuters poll of 10 analysts on Tuesday had forecast July CPI would rise by 12.34 percent.
“Inflation rose primarily because of an increase in prices of food items but going forward, inflation is going to remain a serious concern,” said Ayub Ansari, an analyst at Invest and Finance Securities Ltd.
“This is due to the Ramadan factor and supply side constraints following the flooding.”
Prices traditionally rise in the Muslim fasting month of Ramadan which is due to begin this week.
The inflation trend is also likely to be higher in coming months because of serious floods which began at the end of last month and destroyed some food stocks as well as crops in the fields, and disrupted transport.
Prices have this week been rising sharply in markets in many parts of the country.
The worst floods in 80 years will also mean Pakistan will miss a target of 4.5 percent gross domestic product growth this year although the extent of the damage is being assessed, a Finance Ministry official said on Tuesday.
The International Monetary Fund said on Monday the floods will cause “major harm to the economy”.
The government said it was assessing the flood damage but it would be substantial, especially in the agriculture sector.
The central bank has maintained a tight monetary policy and raised the key policy rate by 50 basis points to 13 percent last month to reinforce its fight against inflation and a widening fiscal deficit.
The CPI was up 1.23 percent from June this year.
Using 2000/01 as the base year, the CPI index stood at 227.79 in July against 225.03 in June. The CPI in July last year was 202.77.

                                   July          June
Consumer price index               227.79        225.03
Year-on-year change (pct)          12.34         12.69
Month-on-month change (pct)        1.23          0.65
Using 2000/01 as the base year, the WPI index stood at
246.48 in July against 242.44 in June. The WPI in July last
year was 207.57.
                                   July          June
Wholesale price index              246.48        242.44
Year-on-year change (pct)          18.75         17.63
Month-on-month change (pct)        1.67         -0.63

*Note: figures are sometimes adjusted retrospectively.