SPI inflation reaches all-time high of 47.23%

Jump in SPI driven by soaring food prices, PBS data reveals

ISLAMABAD:

The Sensitive Price Index (SPI) recorded an all-time high of 47.23% year-on-year (YoY) inflation for the week ending April 19.

According to data released by the Pakistan Bureau of Statistics (PBS), the increase was mainly driven by soaring food prices, which caused a 0.51% rise in short-term inflation on a week-on-week basis.

The SPI tracks the prices of 51 essential items in 50 markets across 17 cities in Pakistan. During the week in question, prices of 29 items rose, eight decreased, and 14 remained stable.

This comes after last month's inflation reached an unprecedented level, propelled by increased costs of food, beverages, and transportation, forcing households to make difficult choices and sacrifices.

Meanwhile, the Consumer Price Index (CPI), which measures monthly inflation, surged to 35.37% YoY in March, the highest rate since available data in July 1965, as reported by research firm Arif Habib Ltd.

To address the fiscal deficit, the government has been implementing measures such as fuel and power tariff hikes, subsidy withdrawals, market-based exchange rates, and higher taxation under the International Monetary Fund (IMF) programme. These actions may lead to sluggish economic growth and a surge in inflation in the upcoming months.