Inflation hits 34.83% on annual basis

ISLAMABAD:

The trend of rising prices of essential items continued in the outgoing week as the rate of inflation has increased by 0.17%, while the hike on an annual basis has reached 34.83%.

According to the weekly figures released by the Pakistan Bureau of Statistics (PBS), during the week ending on February 9, 2023, a total of 29 essential commodities became expensive in the country, five became cheaper, while the prices of 17 remained unchanged.

The 29 items that witnessed a price hike included potatoes, jaggery (Gur), garlic, vegetable ghee,  mash lentil, split chickpeas, masoor lentil, open milk, yoghurt, bread, mustard oil, firewood, matches, salt, liquefied petroleum gas (LPG), and rice.

The five items the prices of which declined during the week included onions, tomatoes, sugar, eggs, and flour.

The rate of potatoes went up by 7.15%, chicken meat by 6.94%, basmati tota (broken) rice by 3.80%, LPG by 3.06, vegetable ghee by 2.71%, cooking oil by 2.60%, maash lentil by 2.42%, cigarettes by 2.25%, and garlic and moong lentil both by 2.20%.

The prices of onions decreased by 9.83%, tomatoes by 5.40%, eggs by 3.40%, flour by 2.71%, and sugar by 0.31%.

During the week, the rate of inflation in the country was 34.83% as compared with the same period last year in terms of the Sensitive Price Index (SPI).

According to the statistics of the week under review, the inflation rate for the group with income of up to Rs17,732 per month on an annual basis was 31.56%.

For the group with income from Rs17,733 to Rs22,888 per month, the inflation rate stood at 32.55%.

Similarly, the group having income from Rs22,889 to Rs29,517 per month, the inflation came to 34.86%.

For those having an income from Rs29,518 to Rs44,175 per month, the inflation rate was 36.36%.

The rate of inflation has been 35.83% for the group having a monthly income of more than Rs44,176.

Inflation has risen to a 48-year high in crisis-hit Pakistan, according to data released by the PBS.

Year-on-year inflation in January 2023 was recorded at 27.55%, the highest since May 1975.

The country’s economy is in dire straits, stricken by a balance of payments crisis while it attempts to service high amounts of external debt.

Pakistan and the International Monetary Fund (IMF) on Thursday failed to reach a staff level agreement within the stipulated time to revive the stalled $6.5 billion bailout package.

However, both the sides agreed on a set of measures that can still help clinch the deal to avoid a looming default.

The Pakistani authorities had hoped that they would convince the IMF about its good intentions regarding implementation of all outstanding conditions in a gradual manner.

But the hopes dashed during the 10-day visit by the IMF mission, which ended on Thursday without a staff level agreement.

The government remained short of providing adequate and convincing assurances to the IMF mission, led by Nathan Porter.

Finance Minister Ishaq Dar held back-to-back meetings but remained short of the end-goal to get a staff level deal done.