Energy keeps CPI in double digits

Pakistan's annual consumer inflation slowed to 10.3 per cent in September, according to the Pakistan Bureau of Statistics, but it still ran above the official projection. Higher electricity and fuel prices more than offset a significant drop in food costs. Monthly inflation edged up to 1.3 per cent, the highest monthly rate since April.

The Planning Commission had assumed average inflation of 7 to 8 per cent for the current fiscal year despite the Middle East conflict. Pakistan informed the International Monetary Fund on Tuesday that inflation would stay below the 8.2 per cent target, with 7.5 per cent the most likely outcome. That view rests on Brent crude averaging $80 per barrel, while prices holding near $100 through December could lift the figure to 8.2 per cent.

PBS data showed urban inflation at 10.1 per cent and rural inflation at 10.5 per cent, with food inflation easing to 8.1 per cent and 7.7 per cent respectively. Energy group inflation accelerated to 11.5 per cent in urban areas and 13.1 per cent in rural areas. Petrol was 39 per cent dearer than a year earlier, at Rs389.4 per litre, while electricity prices rose 33 per cent over the same period.