Inflation surges again, reaches record highs

Following a brief respite with two consecutive weeks of declining inflation, the latest report from the Pakistan Bureau of Statistics reveals a reversal, indicating a 0.37% increase in the Sensitive Price Index (SPI) for combined consumption groups during the week ending December 28. SPI reached 311.14 points compared to the previous week’s 310.00 points. Alarmingly, the annual inflation rate has now surged to a record high of 43.25%.

The weekly inflation report highlights fluctuations in the prices of essential commodities. Among the 51 items monitored, 15 experienced an increase in prices, while nine witnessed a decline. Prices of 27 crucial commodities remained stable during the reporting period.

Notable increases were observed in the prices of onions (15.21%), chicken (4.76%), mutton and beef, various pulses such as mung dal (2.90%) and gram dal (2.89%), sugar (1.35%), lentils (0.78%), and dal mash (0.54%). Conversely, prices of potatoes (-8.66%), tomatoes (-1.01%), vegetable ghee (-0.61%), cooking oil (-0.44%), eggs (-0.40%), mustard oil (-0.24%), jaggery (-0.19%), and garlic (-0.15%) exhibited a decrease.

Read 'Inflation stubborn at 29.2% in December 2023'

On a year-on-year basis, items like onions (12.57%), mustard oil (5.16%), vegetable ghee (1 kg) (1.14%), and bananas (0.20%) experienced a decrease in prices. Meanwhile, commodities such as gas charges for Q1 (1108.59%), cigarettes (93.22%), chilies powder (81.74%), wheat flour bag (73.81%), garlic (70.67%), tomatoes (65.26%), rice irri-6/9 (58.49%), rice basmati broken (58.47%), gents sponge chappal (58.05%), and sugar (54.25%) recorded an increase in their average prices on a year-on-year basis.

According to the Federal Bureau of Statistics, the impact of inflation is discerned across income groups, with the report indicating an inflation rate of 40.74% for those earning between Rs17,000 to Rs22,888 per month. The inflation rate rises to 46.99% for the income group ranging from Rs22,889 to Rs29,517 per month. Similarly, the income bracket of Rs29,518 to Rs44,175 per month witnesses an inflation rate of 44.26%, while those earning more than Rs44,176 per month contend with an inflation rate of 41.60%.

Published in The Express Tribune, December 30^th, 2023.

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