Islamabad- Touching multi-year low level, Pakistan’s inflation rate eased to 5.1 percent in May 2013 against the corresponding period of the previous year mainly due to the declining food prices, revealed the data of Pakistan Bureau of Statistics (PBS) on Monday.

Inflation based on CPI (consumer price index) has clocked to lowest edge of 5.1 percent in 5.1 per cent in May 2013 over the corresponding period of previous year. The inflation has touched lowest level since 2006-07 mainly due to the methodology to calculate the inflation figures last year. Inflation remained in double digits from the year 2008 to June 2012. However, CPI inflation has been continuously declining since June 2012, with the average CPI for 11 months (July-May) of the current fiscal year 2012-13 coming in at 7.51 per cent on yearly basis as compared to 10.97 per cent in 11 months of last FY 2011-12.

The government could easily achieve the inflation rate target of 9.5 percent set for the outgoing financial year 2012-13. The independent economists believed that inflation could be in the range of seven to eight percent at the end of current financial year.

According to the data released by the Pakistan Bureau of Statistics (PBS), inflation based on Consumer Price Index (CPI) was recorded at 7.51 per cent during the first eleven months (July-May) of the ongoing fiscal year 2012-13 over the corresponding period last year. Meanwhile, Sensitive Price Index (SPI) based inflation surged by 7.76 per cent and Wholesale Price Indicator (WPI) based inflation increased by 7.55 per cent during July-May of the ongoing financial year 2012-13. Meanwhile, according to the PBS figures, CPI based inflation increased by 0.7 per cent in May 2013 against April.

The break-up of CPI-based general inflation (5.1 per cent in May 2013 over May 2012) showed that food and non-alcoholic beverages prices went up by 6.22 per cent, alcoholic beverages and tobacco prices increased by 12.98 per cent, clothing and footwear prices soared by 12.57 per cent, housing water, electricity and gas fuels 0.83 per cent, health care charges went up by 11.22 per cent, transportation charges reduced 0.22 per cent, communication charges 5.17 per cent, recreation and culture charges went up by 7.7 per cent, education charges 7.18 per cent and restaurants and hotel charges by 8.34 per cent and miscellaneous 7.69 per cent in May 2013 against the same month of the preceding year 2012.

Meanwhile, according to the PBS figures, price of fresh fruits increased by 11.99 per cent in the month of May against April, prices of fresh vegetables enhanced by 11.87 per cent, prices of potatoes went up by 8.09 per cent, price of gur surged by 4.66 per cent, price of tea increased by 1.82 per cent, pulse masoor price surged by 2.67 per cent and chicken price increased by 2.53 per cent in May 2013 as compared to April.

Similarly, price of sewing needle and dry cell increased by 6.78 per cent, charges of cleaning and laundry enhanced by 2.06 per cent, cotton cloth prices went up by 1.47 per cent, personal care charges went up by 1.29 per cent, marriage hall charges 1.27 per cent, medical equipments prices up by 1.18 per cent and price of stationary increased by 1.02 per cent in May 2013 against April 2013.

However, according to the PBS figures, price of tomatoes decreased 6.06 per cent, price of onions declined by 12 percent, pulse gram went down by 5.14 per cent, price of besan went down by 4.95 per cent, price of eggs reduced by 3.42 per cent in May 2013 against in April.