Inflation hits five-week high

SPI rises to 30.82%, prices of 29 key commodities rose 0.69% WoW

KARACHI:

Inflation in Pakistan, as measured by the weekly Sensitive Price Indicator (SPI), has surged to a five-week high, reaching 30.82% for the week ended August 10, 2023, as compared to the same period last year. The Pakistan Bureau of Statistics (PBS) released its latest report on Friday, revealing that the weekly SPI – a collection of 51 key commodities including major food items – maintained its upward trajectory on a week-on-week basis, escalating by 0.69% during the reviewed week compared to the previous one.

This mounting inflation has put a strain on consumers’ purchasing power, leaving them with the difficult choice of compromising on both the quantity and quality of essential goods, particularly major food and kitchen items.

Of the total 51 commodities monitored, the prices of 29 items witnessed an increase during the week under review, while the prices of 17 items decreased. The rates of the remaining five items remained unchanged.

Year-on-year data provided by the PBS underscores a substantial increase of 30.82% in the inflation rate. Notably, the price of wheat flour has surged by 131.81%, cigarettes by 109.57%, Q1 gas charges by 108.38%, Lipton tea by 95.19%, broken basmati rice by 84.09%, chilli powder by 72.94%, irri-6/9 rice by 72.74%, sugar by 67.90%, chicken by 65.87%, gur by 58.93%, men’s sponge chappal by 58.05%, potatoes by 57.02%, and tomatoes by 53.66%.

Conversely, the prices of onions have experienced a decline of 28.77%, Q1 electricity costs have dropped by 16.63%, masoor pulses by 16.04%, and 1-kg vegetable ghee by 1.93%.

Analysing the week-on-week changes, the prices of essential food items witnessed major increases, including chilli powder by 3.72%, powdered milk by 3.65%, mash pulses by 3.13%, garlic by 2.39%, sugar by 2.30%, chicken by 2.27%, salt by 1.84%, and eggs by 1.74%. In the non-food category, Q1 electricity costs recorded an increase of 1.75%.

On the flip side, certain price decreases were observed, with 1-kg vegetable ghee declining by 1.59%, liquefied petroleum gas (LPG) gas by 0.79%, cooking oil by 0.78%, mustard oil by 0.48%, and 2.5 kg vegetable ghee by 0.10%.

Published in The Express Tribune, August 12^th, 2023.

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