Inflation decelerates for third consecutive month in December

ISLAMABAD-The National Price Monitoring Committee (NPMC) on Monday has expressed satisfaction over the decline in the inflation rate, which has dropped to 8 per cent in December. 

Federal Minister for Finance & Revenue, Dr Abdul Hafeez Sheikh, chaired the meeting of the NPMC. Inflation has eased to 8 per cent in December on the back of a slight decline in the price of perishable products.

The deceleration in inflation was noticed for the third consecutive month in December. The National Price Monitoring Committee (NPMC) reviewed the price trend of essential commodities especially wheat, sugar and edible oil. Finance Secretary briefed about the decline in per cent the Consumer Price Index recorded at 8 per cent in December 2020 as compared to 12.6 per cent in December 2019 as a positive outcome of vigilant monitoring under NPMC on regular basis. The NPMC noted a significant decline in food inflation as urban food inflation declined by 2.1 per cent and rural declined by 3.4 per cent on Month-on-Month basis. NPMC was also informed that there is a decline in weekly Sensitive Price Index by 0.7 per cent. Prices of 10 essential food commodities were reduced notably tomatoes, onions, potatoes and chicken.

The Chair noted that the prices of essential items have started showing a declining trend which is a positive outcome of vigilant monitoring under NPMC on weekly basis. He emphasised increased coordination among Federal and Provincial authorities to identify demand-supply gaps and take immediate remedial measures to ensure uninterrupted supply of items of daily use at affordable prices.

The NPMC observed price variation in wheat flour in Sindh and Balochistan Provinces which was reflected in PBS data. The Finance Minister directed the Chief Secretaries to regulate the smooth supply of wheat throughout the province by increasing daily release, if needed, and submit a comprehensive report in the next NPMC accordingly. The Chair urged the Provincial Secretaries to check the possibilities of hoarding and black marketing especially wheat and sugar to ensure uninterrupted provision at fair prices. 

Federal Minister for Industries and Production, Hammad Azhar, updated the NPMC about measures being taken to further reduce the prices of sugar and edible oil in consultation with stakeholders. The Chair directed to constitute a Committee, headed by the Minister for Industries and Production, with Secretary MNFS&R and stakeholders concerned as its members to come up with a concerted course of action in this regard. The Adviser to the Prime Minister on Commerce, Textiles & Investment Abdul Razak Dawood also appreciated the measures being taken to further reduce the prices of sugar and edible oil. The Chair stressed the need for the effective functioning of all federal and provincial authorities to monitor the demand-supply position across the country for the provision of daily use items to the general public at affordable rates.

Minister for Industries & Production, Adviser to the Prime Minister on Commerce, Textiles & Investment, Special Assistant to the Prime Minister on Revenue, Provincial Chief Secretaries,  MoNFSR Secretary, Commerce Special Secretary, FBR Chairman, Planning Development & Special Initiatives Additional Secretary, CCP Member, TCP Chairman,  PASSCO MD, Utility Store Corporation MD, National Accounts Member and Finance Division senior officers the participated in the meeting.