Weekly inflation escalates to 7-month high over rising fuel prices

• SPI increase by 1.36% in week ending on Jan 11.
• SPI inflation rate jumps to 44.16% on YoY basis.
• Main contributors to weekly inflation are food items.

ISLAMABAD: Weekly inflation surged to its highest level in more than seven months, official data showed on Friday, as skyrocketing food prices fuelled by a depreciating currency and rising energy costs squeezed household budgets.

The Sensitive Price Indicator (SPI), which tracks the prices of 51 essential items, increased by 1.36% in the week ending January 11, compared to the previous week, according to the Pakistan Bureau of Statistics (PBS).

The SPI inflation rate jumped to 44.16% on a year-on-year basis, the highest since May 2023. In the preceding week, ending January 4, the SPI had been recorded at 42.86%. The SPI has been above 40% for nine consecutive weeks, reflecting the persistent inflationary pressures in the economy.

The main contributors to the weekly inflation were food items, especially tomatoes, onions, chicken, eggs, and pulses, which saw double-digit price hikes. Electricity charges, LPG cylinders, and matchboxes also became more expensive.

The latest data from the Pakistan Bureau of Statistics (PBS) indicated a mixed trend in food item prices, with some experiencing reductions while others saw increases. For individuals in the lowest income slab, earning up to Rs17,732 per month, the SPI inflation stood at 36.06%, while for those in the group spending more than Rs44,175 per month, it was recorded at 42.71%.

Out of 51 items monitored by SPI for price movement, 21 items (41.18%) witnessed an increase, eight items (15.68%) recorded a decrease, while prices of 22 items (43.14%) remained stable.

During the week, notable price hikes were observed in various commodities in Pakistan. Tomatoes prices surged by 15.6% to Rs144/kg, onions by 8.9% to Rs211/kg, chicken farm (live) by 6.4% to Rs436/kg, electricity charges for Q1 by 5.1% to Rs7.4/unit, eggs farm by 4.3% to Rs417/dozen, matchbox by 2.56% to Rs6/box. Similarly, gur price increased by 2.3% to Rs208/kg, LPG 11.67kg cylinder by 2.3% to Rs3355, gram pulse by 2.1% to Rs258/kg, energy saver by 1.4% to Rs354, mash pulse by 0.8% to Rs536/kg, and rice IRRI-6/9 by 0.67% to Rs167/kg.

Conversely, a decrease was observed in the prices of potatoes by 5.9% to Rs60/kg, vegetable ghee 1 KG by 0.84% to 502/kg, sugar by 0.43% to Rs146/kg, vegetable ghee 2.5 KG tin by 0.29% to Rs1311, mustard oil by 0.26% to Rs502/kg, and cooking oil 5 Litre reduced by 0.17% to Rs2757.

On a year-on-year basis, gas charges for Q1 increased by 1108.6%, tomatoes by 155.8%, cigarettes by 93.2%, chillies powder by 81.7%, garlic by 60.4%, gents’ sponge chappal by 58%, sugar by 57%, wheat flour by 55%, gents’ sandal by 53%, rice IRRI-6/9 by 52%, gur by 51%, and broken basmati rice by 47%. 

Whereas, a decrease was observed in the prices of mustard oil at 7.1%, onions at 6.7%, vegetable ghee 1-KG at 1.7%, and bananas at 1.5%.

Originally published in The News