By Irfan Ahmed ISLAMABAD, Mar 04 (INP-WealthPK): The Inflation rate increased to 12.2% in February 2022 from 8.7% in the corresponding month of last year, according to data released by Pakistan Bureau of Statistics (PBS) on Tuesday. The average inflation rate during the period from July to February (2021-22) increased up to 10.52% over the same period of the preceding year, reported WealthPK. Inflation has risen in recent months as a result of a record rise in global oil prices and transportation costs. Non-perishable food, fruits, cooking oil, milk, legumes, electricity, cotton cloth, motor vehicle accessories, building supplies, chemicals, and hosiery goods have all seen price increases, according to PBS statistics. The prices of commodities have risen in the international market affecting Pakistan as well because fuel is the country’s primary import, resulting in greater manufacturing and transportation expenses. The Urban consumer price index (CPI) covers 35 cities and 356 consumer items while the Rural CPI covers 27 rural centers and 244 consumer items. The Urban CPI inflation increased by 11.5% year-on-year in February 2022 as compared to an increase of 13% in the previous month and 8.6% in February 2021. On a month-on-month basis, inflation increased by 0.9% in February 2022 as compared to an increase of 0.1% in the previous month and an increase of 2.3% in the same month of the previous year. Commodities which varied from the previous month and contributed to Urban CPI inflation are tomatoes (310.06%), mustard oil (49.85%), cooking oil (41.03%), vegetable ghee (38.82%), pulse masoor (38.42%), vegetables (33.31%), fruits (26.07%), gram whole (24.38%), meat (23.64%), pulse gram (13.90%), beans (13.03%), besan (11.97%), rice (11.89%), milk (10.84%), and non-food items including liquefied hydrocarbons (54.60%), motor fuel (39.72%), cleaning & laundering (22.90%), washing soap/detergents/match box (17.09%), motor vehicle accessories (15.86%), solid fuel (12.67%), plastic products (11.43%) and stationery (10.50%). On the other hand, the prices of pulse moong registered a decrease of 25.64%, condiments & spices (13.63%), sugar (5.43%), onion (5.35%), and chicken (4.62%). The Rural CPI inflation increased by 13.3% on a YoY basis in February 2022 as compared to an increase of 12.9% in the previous month and 8.8% in the same month of previous year. The Rural CPI of January 2022 increased by 1.48% over January 2021 and increased by 13.33% over the corresponding month of 2021. Commodities that varied from the previous month and contributed to Rural CPI inflation are food items like tomatoes (267.51%), mustard oil (52.00%), cooking oil (47.73%), vegetable ghee (44.06%), pulse masoor (39.78%), vegetables (39.21%), gram whole (34.43%), fruits (25.30%), meat (24.30%), beans (14.84%) and besan (14.55%), and non-food items including liquefied hydrocarbons (47.00%), motor fuels (38.93%), washing soaps/detergents/match box (18.62%), cleaning & laundering (16.82%), hosiery (15.68%), motor vehicles accessories (15.26%), solid fuel (15.11%), woolen readymade garments (15.03%), woolen cloth (14.02%), plastic products (12.70%) and furniture & furnishing (12.58%). In contrast, the prices of pulse moog decreased by 26.37%, condiments & spices (16.05%), onions (5.06%), sugar (4.53%), and chicken (3.15%). The sensitive price index (SPI) inflation increased by 18.7% in February 2022 as compared to an increase of 20.9% a month earlier and an increase of 11.9% in February 2021. On a MoM basis, it increased by 1.3% in February 2022 as compared to a decrease of -0.8% a month earlier and an increase of 3.1% in the corresponding month of last year. [caption id="attachment_64427" align="aligncenter" width="450"] SOURCE: Pakistan Bureau of Statistics[/caption] The wholesale price index (WPI) increased by 23.6% in February 2022 as compared to an increase of 24.0% a month earlier and an increase of 9.5% in February 2021. The WPI inflation on a MoM basis increased by 1.9% in February 2022 as compared to an increase of 0.6% a month earlier, and an increase of 2.2% in the corresponding month of 2021. Commodities that varied from the previous month and contributed to the WPI inflation included fibre crops (80.77%), vegetables (70.86%), oil seeds (62.53%), kerosene oil (51.54%), furnace oil (47.69%), steel bar & sheets (46.28%), chemicals (46.15%), fertilizers (46.10%), cotton yarn (45.36%), vegetable ghee (44.67%), diesel (40.97%), motor spirit (40.92%), vegetable oils (32.89%), bajra (22.36%), and meat (20.43%). On the other hand, prices of spices decreased by 33.63%, poultry 5.78%, sugar 4.96%, maize 3.31%, and eggs 1.89%. Inflation will likely remain high in the near term due to base effects from 2005-06 to 2015-16 and energy prices. To combat inflation, the government must implement efficient economic policies to ensure ease of doing business which will help generate wealth and attract foreign direct investment.