Inflation up by 11.04pc on annual basis.

Byline: Imran Ali Kundi

ISLAMABAD -- Inflation rate surged by 11.04 percent in October on annual basis due to increase in prices of basic food commodities. Inflation, measured through the Consumer Price Index (CPI), edged up by 1.82 percent in October over the previous month (September), the Pakistan Bureau of Statistics (PBS) reported on Wednesday.

The PBS has released two figures of CPI (Consumer price index) based inflation as one figure with old methodology and second with rebasing exercise. On both accounts, the CPI based inflation has shown rising trends. Inflation with new base year (2015-16) has increased by 11.04 percent. Meanwhile, on old methodology (base 2007-08), the inflation has gone to high 11.08 percent in October 2019 over the corresponding period of last year.

Inflation rate is continuously increasing mainly due to the economic policies of the incumbent government including rupee devaluation and increase in energy costs. The International Monetary Fund (IMF) had estimated that Pakistan's inflation may surge to 13 percent. The Asian Development Bank (ADB) had already warned that inflation rate would further accelerate to 12 percent in ongoing fiscal year (FY2020) because of a planned hike in domestic utility prices; taxes introduced in budget and lagged impact of currency depreciation. However, the government's estimate is around 11 percent, which is already been crossed in the outgoing month.

According to the PBS, inflation was recorded at 10.32 percent during first four months (July to October) of the...