Weekly inflation sees uptick of 0.71%

KARACHI:

The weekly inflation reading, measured through the Sensitive Price Indicator (SPI), increased by 0.71% due to an uptrend in food prices compared to the previous week, marking a reversal from the deceleration in essential commodities seen in the prior two weeks.

During the week, out of 51 items, prices of 12 (23.53%) items increased, 14 (27.45%) items decreased, and 25 (49.02%) items remained unchanged on a weekly basis. PBS reported that the inflation reading surged by 29.88% in the week under review compared to the same week of the last year. The year-on-year surge was recorded mainly in gas charges for Q1, which surged by 108.38%, followed by cigarettes becoming expensive by 94.46% in a week.

Pakistan’s benchmark monthly inflation (CPI) reading hit a 10-month low at 26.9% in October compared to a four-month high at 31.4% in the prior month of September 2023.

The central bank maintains its average monthly inflation reading in the range of 20-22% in the current fiscal year 2023-24 despite the recent significant hike in gas prices for consumers across the board. A local research house, however, contradicts the bank, saying the inflation rate will spike to 24.5%, due to the massive upward revision in gas prices announced recently.

Published in The Express Tribune, November 4^th, 2023.

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