In September, 1% decrease has also found in the prices of food and non-alcoholic beverages in more than one year. Similarly, fresh food prices has also reduce by 8% as well as prices of kerosene oil were also appeared one-fourth less on a year-on-year basis in September.[alert style=”white”] However, the reduction in inflation was emerged due to decline in the price of commodities mostly in oil and food prices. [/alert]
Meanwhile complete inflation rate has been found out 3.4% on a basis of year-on-year including September. It is worth mentioning here that inflation rates were also reduce by 1.7% and 1.8% in the month of August and respectively. According to the Pakistan Bureau of Statistics (PBS), the rate of inflation with respect to the Wholesale Price Index (WPI) got reduce by 3.1% from July to September as compare to last year. While The CPI-based inflation rate from July to September has continued on 1.7% as the official target is set as 6% inflation during the fiscal year 2015-16.
However, the CPI is regularly going towards deflation due to which inflationary rate has been going low since last year. It is pertinent to mention that the State Bank of Pakistan (SBP) has cut down interest rates of 6% to a 42-year low with the aim to speed up the growth by keeping consistency with the target of inflation.
In this regard, a dean of School of Social Sciences and Humanities of the National University of Science and Technology Dr Ashfaque Hasan Khan said that the economy is going towards deflationary day by day and government is not taking any serious action in this manner. Some of the economist has started to claim that government should release fiscal policies by looking forward towards economic incentive in order to stop the economy from lowest level.
Although government is used to remain active regarding exchange rate in order to stop any negativity which can emerged due to deflation on imported goods, mainly fuel and electricity prices.
