Weekly inflation jumps 0.8%, highest since July 4

KARACHI: Pakistan’s short-term inflation, as measured by the Sensitive Price Indicator (SPI), surged by 0.8% for the week ending December 26, 2024, according to data from the Pakistan Bureau of Statistics (PBS) released today (Friday).

Year-on-year inflation for the same week recorded a rise of 5.08%, reflecting continued pressure on household budgets amid fluctuating prices.

Among the key contributors to the weekly inflationary trend, chicken prices soared by 22.47%, followed by a 20.75% increase in tomatoes. Other notable hikes included sugar (up 2.19%), vegetable ghee (1.17% for 1kg packs and 0.91% for 2.5kg packs) and firewood (0.95%). Prices for LPG and washing soap also saw marginal upticks, 0.18% and 0.09% respectively.

Conversely, relief was observed in the prices of onions, which plummeted by 8.13%, along with potatoes (down 2.38%), and pulses such as mash (1.28%) and gram (0.78%). Bananas, rice (basmati broken) and eggs also experienced slight price declines (0.68%, 0.5% and 0.3% respectively).

Out of the 51 essential items monitored, 17 saw price increases, 10 recorded decreases and 24 remained stable.

Year-on-year data revealed tomatoes as the largest contributor to inflation, with a staggering 138.53% rise, followed by significant increases in potatoes (61.17%) and various pulses. Non-food items also registered hikes, with ladies’ sandals surging by 75.09%, and gas charges for the lowest consumption slab increasing by 15.52%. However, substantial declines were noted in wheat flour prices (down 36.2%), onions (31.21%), and diesel (7.49%).

The inflation impact varied across income groups, with the wealthiest quintile (monthly income above Rs44,175) witnessing a 0.81% weekly increase, while the lowest income group (monthly income up to Rs17,732) saw a 0.69% rise.