Capital the most expensive city

ISLAMABAD—Islamabad, the capital of Pakistan has emerged as one of the costliest cities in the country after inflation hit double figures in the first quarter (July-September) of the current fiscal year. Overall inflation rose between 10 and 13 per cent in the capital and 11 other cities mainly due to increase in prices of food items. However, national average inflation did not go beyond eight per cent.
The residents of these cities had been experiencing the highest ever food inflation ranging between 13 and 16 per cent, thus putting pressure on the monthly budget of the lowest income group, whose earnings range from Rs3,000 to Rs12,000 per month. Latest official figures show that food inflation in Islamabad was the highest ever for all income groups.
There was an increase of 11.5 per cent for the income group of Rs3,000, 12.3 per cent for the group whose income ranges from Rs3,001-Rs5,000; 12.8 per cent for those earning between Rs5,000-Rs12,000 and 14.2 per cent for over Rs12,000 income group. Analysis of individual items reveals that prices of 49 commodities including fresh milk, beef, sugar, chicken, pulses, cooked mutton, honey, etc., exhibited over 10 per cent inflation year on year (YoY) in September 2006, of which some fruits and vegetables like guava, green chillies, tomatoes, etc., showed more than 30 per cent increase in prices.
Among key food items, the average price of wheat flour was recorded at Rs130.63 per 10kg during September 2006 which was 1.3 per cent higher than that in the previous month. Fresh milk price showed a year on year increase of 11.1 per cent in September compared with 10.4 per cent in August, while increase in prices of sugar and beef was lower in September than those in August.
The highest inflation among the 12 cities was recorded in Okara (13 per cent) that was primarily due to food inflation in September 2006.

—Agencies