January inflation increased by 0.09% to 8.58% from 8.49% of last December due to increase in food inflation. In January food inflation raised by 0.58% to 8.29%, which was 7.71% in December. Food inflation is increasing consistently during last three months. Non-food inflation slightly eased by 0.32% in January from December.
Upcoming national election and high food items demand because of ensuing Ramadan pressuring inflation to rise. National election season and high expatriate wage earners remittance during last few months causing increased money flow in the market that created high food inflation in January. The trend may remain so in next February.
Wage rate index has also increased slightly by 0.01% in January from 8.07 of December. The average wage rate during last twelve months at the end of January was 8.12% against 8.67% that of inflation. Lower average wage rate eroded purchasing power of the domestic wage earners by 0.55% during last twelve months.
