Shortterm inflation experienced a notable yearonyear surge of . per cent for the week ending on July mainly attributed to a sharp rise in electricity and liquefied petroleum gas prices . On a weekonweek basis the shortterm inflation measured by the Sensitive Price Index SPI rose .
pc the highest increase in the past two months . The biggest rise was recorded in the prices of powdered chillies . In May the SPI stayed above .pc for three weeks after hitting an alltime high at .pc on May . The depreciation of the rupee rising petrol prices an increase in sales tax and higher electricity bills are among the key contributors to this inflationary trend .
The government has been taking harsh measures hikes in fuel and power tariffs withdrawal of subsidies marketbased exchange rate and higher taxation under the IMF programme to generate revenue for bridging the fiscal deficit which may result in slow economic growth and higher inflation in coming months .
Despite this positive outlook, price pressures are still expected to remain high mainly due to the delayed implementation of monetary tightening and elevated inflation expectations and high inflation expectations . The IMF has projected that the average Consumer Price Index CPI CPI will be in FY 2013-2014 .
However its worth noting that it is expected to ease only in the fourth quarter of the current fiscal year . However, it is worth noting it is likely to ease in the third quarter of this fiscal year. Despite this, it will be a notable decrease in the first quarter of 2013-2015.
The Government has taken harsh measures to raise prices of the inflationary cycle. The inflationary pressures are expected to continue to increase in 2013-2013. The average Consumer Prices Index CPI is still to be a significant decrease. The government is not necessarily a significant amount.
