Inflation slows down to 0.9%

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Headline inflation slowed down further to 0.9 percent year-on-year in September 2019 from 1.7 percent in the previous month and was within the BSP’s expected range of 0.6-1.4 percent for the month.

The resulting year-to-date average inflation rate of 2.8 percent remained well within the government’s target range of between 2 and 4 percentage points for the year.

Similarly, core inflation–which excludes selected volatile food and energy items to measure underlying price pressures–eased to 2.7 percent in September from 2.9 percent in August.

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Month-on-month seasonally-adjusted inflation was nil in September compared with 0.1 percent in the previous month.

Most major commodity groups registered either lower or negative inflation rates in September.

Year-on-year food inflation has turned negative in September as prices of rice, corn, vegetables as well as sugar, jam, honey, chocolate, and confectionery continued to decline relative to year-ago levels.

Among non-food items, electricity, gas, and other fuels inflation remained negative due to lower electricity rates as a result of the downward adjustment in generation charges.

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