This comforting decline in core inflation, however, is eclipsed by the persistently high food inflation stemming principally from supply side disturbances. In totality, the average consumer price index (CPI) saw a rise of 8.0 percent during July-March FY07 relative to the annual target of 6.5 percent for FY07.
With inflation in Pakistan being relatively higher compared to its competitors and trading partners, the Relative Price Index (RPI) increased by 5.8 percent during first three quarters of FY07.