ISLAMABAD, Sept 2: Pakistan’s inflation rose 8.5 per cent in August 2013 from a year ago, the highest increase after 13 months.

Inflation, measured through Consumer Price Index (CPI), increased by 1.2pc from the previous month, reflecting the impact of taxation and increase in oil prices in domestic market, suggested data of Pakistan Bureau of Statistics here on Monday.

Since June 12, 2013 the prices of manufactured items are on the rise because of increase in the sales tax rate from 16pc to 17pc and imposition of withholding tax on various products in the budget 2013-14.

Upward adjustments in prices of petroleum products in the last two months further fuelled inflation.

In the next few months, prices are expected to increase further due to the third consecutive hike in petroleum prices, the rupee depreciation and the electricity charges of industrial and commercial users, which are all likely to result in increased cost of production and also push up non-food inflation.

The government has projected an inflation target of 8pc for 2013-14 fiscal year compared to 7.38pc in the year 2012-13.

Core inflation, which is non-food and non-energy inflation, rose 8.5pc in Aug 2013 from a year ago.

Government will announce next monetary policy on September 9 to decide whether to increase the interest rate or reduce it further.

In August, total food inflation was at 10.3pc from a year ago, non-perishable food items witnessed a surge of 8.70pc and perishable items increased 18.02pc in August over last year.

Industrial goods recorded a massive increase during the last month validating the argument of an increase in prices in the coming months.

The price of food items, which registered increase, include: onions (70.08pc), tomatoes (45.05pc), fresh vegetables (27.18pc), wheat flour (27.07pc), wheat (26.78pc), chicken (26.03pc), tea (25.02pc), gur (21.69pc), wheat products (19.37pc), cigarettes (14.65pc), cereals (13.25pc), rice (13.21pc), potatoes (12.43pc) and beans (11.97pc).

On the other hand, non-food inflation witnessed an increase of 7.3pc in August 2013 from a year ago. This is mainly because of increase in the prices of petroleum products during the month under review.

Non-food items prices that rose in August over last year include: postal services (25.98pc), woolen readymade garments (19.21pc), footwear (18.51pc), text books (15.84pc), tailoring (15.78pc), dupatta (15.13pc), cotton cloth (14.94pc), cleaning & laundry (13.89pc), sewing needle and dry cells (13.66pc), cosmetics (13.34pc), hosiery (12.52pc) and readymade garments (12.45pc).

The PBS statistics showed that the inflation measured through sensitive price index was up by 9.93pc in August and inflation in the wholesale manufactured products also increased 7.41pc over August last year.