Sunday Jan 05, 2020
LAHORE: The Flour Mills Association (FMA) on Saturday jacked up the price of flour to Rs64 per kg in Punjab, The News reported.
According to a FMA spokesperson, after an increase of Rs4, the price of flour has now been fixed at Rs64 per kilogram.
The price was increased after a surge in wheat price by Rs7 per kg, the spokesperson said, adding that the situation had gone from bad to worse after the government hiked electricity and gas tariffs.
Last month the Pakistan Bureau of Statistics (PBS) stated that consumer inflation inched down to 12.6 per cent year-on-year in December 2019 compared to 12.7 per cent in the previous month, The News reported.
The data by PBS showed that consumer price index (CPI) inflation fell 0.3 per cent month-on-month in December compared to a rise of 1.3 per cent in the previous month and a decrease of 0.3 per cent in December 2018.
Food inflation remained stubborn with a 19.74 per cent year-on-year reading during the last month. On a month-on-month basis, food prices were seen declining weighing down overall national inflation in December on a month-on-month basis as foods account for 35 per cent of the basket.
The annual CPI was in line with the market expectations as a higher number was anticipated with an increase in energy and food prices. Analysts said they were expecting the numbers to go beyond the central bank’s target range of 11 to 12 per cent.
However, there was a consensus that inflation was reaching its optimal point and therefore would decelerate to give a leeway for a much-awaited rate cut in March and onwards to rejuvenate the faltering economy.
Originally published in The News