Pakistan's inflation down to 13.07 pct in May

Pakistan's inflation as measured by Consumer Price Index (CPI) stood at 13.07 percent in May, whereas average CPI inflation for the first 11 months of the fiscal year 2009-10 stood at 11.64 percent, local media reported Saturday.

According to official data released on Friday, the 13.07 percent compares with 13.26 percent of the preceding month and 14. 4 percent in the same month of last year, the local newspaper Daily Times reported.

"Given the lower oil price and abundant food stocks of wheat and rice, we expect the MoM inflation to remain on the lower side in the coming months, thus helping to bring down headline inflation going forward," said analyst Farhan Rizvi.

Transport and communication index eased 2.14 percent MoM on account of decline in petroleum product prices by 1.5 percent to 4. 5 percent.

"Though the electricity price pass through remains an upside risk, our estimates suggest that the pass through would only be in the range of 10 percent to 11 percent, which would generate a direct inflationary impact of 0.48 percent," said Rizvi.

Analysts said that improvement in food supply helped the food index, which has a 40.34 percent weight in CPI basket, to post a nominal MoM increase of 0.04 percent in May 2010.

Source:Xinhua