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The objective of this research paper is to examine the relationship between relative price variability and inflation by using consumer price index (CPI) of Pakistan. The outcomes of the research further divided into food and non-food groups too. The monthly data of CPI was taken from the Pakistan Bureau of Statistics, from August 2001 to July 2011 (with 2000-01 base) for 92 composite commodities with 12 sub-groups. We employed the Granger causality testing approach for the evaluation of anydoaj:bf9e90e681c44394a6e0b0eb7575ba2a fatcat:im34n6i72fac7dc33oi2u57m3u