ISLAMABAD, May 2: Inflation rose 5.8pc in April from a year ago, reflecting the slowest pace of increase in 39 months.

The falling trend in inflation is the outcome of slowdown in food prices in the past few months.

The price spiral is still there mainly because of higher price of fuel and lubricants in the month under review.

On a month-on-month basis, inflation measured through the Consumer Price Index increased by 1.1 pc in April from the previous month, suggested data of Pakistan Bureau of Statistics (PBS) on Thursday.

For the first 10 months (July-April) of this fiscal year, inflation rose at an average rate of 7.78pc over the same period last year, slightly lower than the government projected annual target of 9.5pc.

The slowdown in inflation in the past few months shows that the government may be able to achieve its target.

Core inflation, which is non-food and non-energy inflation, rose 8.7pc in April from a year ago, but also witnessed a slight increase of 1.1pc when compared with March.

The State Bank of Pakistan had kept its key policy rate unchanged at 9.5pc in the monetary policy announced on Feb 8, 2013.

In April, total food inflation was 5.5pc from a year ago, non-perishable food items witnessed a surge of 5.59pc. However, prices of perishable items increased 2.40pc in April this year over last year.

In the past few months, perishable products prices witnessed negative growth until March but it rebounded in April with a slight increase. The prices of food items witnessed growth in April this year over last year.

These include onions 116.49pc, honey 17.25pc, tea 15.67pc, wheat 15.64pc, wheat flour 15.30pc, rice 15.25pc, wheat products 13.92pc, beans 12.15pc, milk powder 11.81pc, cereals 10.84pc, eggs 10.07pc and milk fresh 9.69pc.

On the other hand, non-food inflation witnessed an increase of 6pc in April from a year ago, mainly driven by increase in oil price.

The international oil price was on the rise since August last year and reached the highest level at $125 per barrel.

The decrease in domestic oil price will be reflected in the month of May.

Non-food items which increased include text-books 48.60pc, woolen readymade garments 19.88pc, cleaning and laundry 15.57pc, dopatta 17.88pc, electricity 16.39pc, doctor’s fee 16.01pc, tailoring 13.96pc, cotton cloth 14.26pc, and hosiery 13.91pc.

The PBS statistics showed that inflation measured through sensitive price index was up 6.6pc in April and inflation in the wholesale manufactured products also increased 6.8pc over April last year.

At the same time, a weaker rupee will fan inflation, especially of imported products. The State Bank seems to be reluctant to intervene to check the fall of rupee.