Consecutive declining trends have been witnessed in the CPI based inflation during the first half of the current fiscal year, as year-on-year inflation rate dropped from 11.3 per cent in June 2012 to 7.9pc in December 2012.

The analysis of the data of PBS reveals that the inflation rate stayed single digit during the first six months (July-December 2012) against the double digit inflation from January 2012 to June 2012. The CPI based inflation rate was recorded at 9.6% in July 2012 but declined to 9.1% in August and dipped down to 8.8% in September 2012. The inflation rate again declined to 7.7% in October 2012, then to 6.9% in November 2012, however went up to 7.9% in December 2012, the data revealed. Based on the data, the food inflation rate dropped from 10.3% in June 2012 to 7.7%.

The food inflation rate was recorded at 9.1% in July, 8.5% in August, 7.6% in September, 5.8 % in October, 5.3% in November and 7,7% in Dec. On the other hand, the non-food inflation rates also witnessed declining trends, as it dropped from 12% in June 2012 to 8.1% in Dec 2012. The non-food inflation remained at 10% in July 2012 while it was recorded at 9.4% in August, 9.7% in September, 9.1 % in October, 8.1% in November while it was recorded at 8.1% in Dec 2012.

The inflation rates based on Sensitive Price Indicator (SPI) showed mixed trends during the period under review as it was recorded at 9.7% in June and fell to 7.7% in July but again went up to 8.2% in August.The SPI was recorded at 8.0% in September, 6.7% in October, 6 % in November and 8.2% per cent in December. The WPI based inflation rate however witnessed increasing trends as it stood at 6.4% in June, 7.2% in July, 7.7% in August, 7.8% in September, 7.5% in October, 7.7% in November and 9.6% in December.

Meanwhile, non-food, non energy (NFNE) inflation showed mixed trend during the period under review as it went down from 11.4 % in June to 11.3% in July, 10.8% in August but again increased to 10.4 % in September again going down to 10.1% in October and to 9.7 % in November but witnessed slight increase to go up to 9.8%.The trimmed inflation during the period under review declined from 11.1% in June to 9.2% in December that data revealed. The trimmed inflation rate was recorded at 10.7% in July, 10.6% in August, 10.4% in September, 9.7% in October and 8.8% in November 2012, the data revealed.