Weekly inflation
ISLAMABAD: Weekly inflation in Pakistan has surged to its highest level in over seven months, driven by skyrocketing food prices, a depreciating currency, and increasing energy costs. According to official data from the Pakistan Bureau of Statistics (PBS), the Sensitive Price Indicator (SPI), tracking 51 essential items, rose by 1.36% in the week ending January 11 compared to the previous week.
On a year-on-year basis, the SPI inflation rate soared to 44.16%, the highest since May 2023, reflecting persistent inflationary pressures in the economy. For nine consecutive weeks, the SPI has remained above 40%. The main contributors to the weekly inflation were food items, including tomatoes, onions, chicken, eggs, and pulses, witnessing double-digit price hikes. Additionally, electricity charges, LPG cylinders, and matchboxes also became more expensive.
The latest PBS data revealed a mixed trend in food item prices, with some experiencing reductions while others saw increases. Individuals in the lowest income slab, earning up to Rs17,732 per month, faced an SPI inflation of 36.06%, while those spending more than Rs44,175 per month recorded an inflation rate of 42.71%.
Out of the 51 items monitored by SPI for price movement, 41.18% witnessed an increase, 15.68% recorded a decrease, and prices of 43.14% remained stable. Notable price hikes during the week were observed in commodities such as tomatoes, onions, chicken, electricity charges, eggs, and matchboxes. Conversely, decreases were noted in the prices of potatoes, vegetable ghee, sugar, and cooking oil.
On a year-on-year basis, several items experienced substantial price increases, including gas charges, tomatoes, cigarettes, chillies powder, garlic, gents’ sponge chappal, and sugar, while decreases were observed in mustard oil, onions, vegetable ghee, and bananas. The economic landscape underscores the challenges faced by households grappling with the impact of inflation on their budgets.
