Core inflation falls to 7.5% in Oct
The non-energy and non-food inflation eased for the second consecutive month to 7.5% in October, putting a question mark over the central bank's assumption that increasing energy and food prices may "seep into core inflation", which was used to raise its policy rate. With the slowing pace, the difference between core inflation and the policy rate has substantially widened to 4.5% for the benefit of commercial banks, but at the expense of borrowers, mainly the finance ministry. Pakistan Bureau of Statistics (PBS) reported on Monday that the urban core inflation rate, calculated after excluding volatile energy and food prices, slowed down to 7.8% and rural inflation further fell to 7.1% in October. It was the second straight month when core inflation eased after peaking at 8.8% in August.