High Oil prices increases inflation by 3.8 percent – Research Snipers

High Oil prices increases inflation by 3.8 percent

The inflation is on the rise in Pakistan, besides other factors, the new hike in oil prices pushed inflation further up by 3.8 percent.

According to the Pakistan Bureau of Statistics (PBS), the figures released on Wednesday indicate that due to ongoing perpetual increase in oil prices affected inflation rate which saw surge 3.8 percent during the month of October as compared to the same month last year.

The government has accepted the summary sent by OGRA suggesting to increase the prices of all petroleum products, the government has increased the oil prices by Rs2.49 per litre in petrol, Rs5.19 per litre in High Speed Diesel (HSD), Rs3 per litre in Light Diesel and Rs.5.19 per litre in Kerosene oil for the month of November.

According to the government, the inflation should remain under control regardless of an increase in oil prices, the current inflation rate is still under the target, the government had set the target for inflation rate at 6 percent for the fiscal year 2017-18, said an official of the Finance Ministry.

According to PBS, 3.5 percent CPI-based inflation was recorded during the first four months from July to October of the current financial year. And according to Sensitive Price Indicator (SPI), 0.89 percent increase was recorded, and Wholesale Price Index saw an increase of 1.39 percent.

Due to the increased inflation rate prices of all commodities also increased including Food, household products, Clothing and footwear, transport and education while the prices of tobacco and alcoholic beverages went down significantly by 16.21 percent. According to PBS, the prices of fresh vegetables and Sugar were also decreased.

The increasing oil prices are likely to further affect the prices of overall commodities in Pakistan in the coming days due to increasing oil prices in the international market.