Inflation rose 10 basis points to 5.62 percent in July as both food and non-food prices moved upwards.
In June, inflation was 5.52 percent, down 11 basis points compared to the previous month, because of a decline in both food and non-food prices.
Inflation was slightly increased in the first month of the fiscal year as prices of vegetables rose because of heavy rains and floods in the rural areas. The floods and rains hampered production and disrupted the supply chain. Besides, people bought more products in Eid-ul-Azha, pushing up the price of both food and non-food items.
In addition, implementation of the new VAT law and the upward revision in gas prices also contributed to the rise in non-food inflation both relative to June 2019 and July 2018.
Food inflation was up two basis points from 5.40 percent in June to 5.42 percent in July, while non-food inflation rose to 5.94 percent last month, up 23 basis points from 5.71 percent a month ago.
The analysis of the ministry said that prices of meat, fishes, eggs, edible oils, variety of spices and soft drinks increased in July. In non-food category, house rent, gas bills, cost of healthcare services, education equipment and prices of clothing and miscellaneous goods also went up in the given month.
In urban area, inflation rose to 5.88% in July from 5.78% in June. In the rural area, it was 5.38% in June and moved up to 5.49% in July.
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