Inflation hits four-week high

Out of 51 items, prices of 19 increase, 9 decrease, and 23 remain unchanged during week


Our Correspondent January 06, 2024
Inflation hits four-week high

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KARACHI:

Pakistan’s weekly inflation, measured by the Sensitive Price Indicator, rose by a four-week high rate of 0.81% in the week ending Jan 4, 2024, according to the PBS. The stubborn inflation is primarily attributed to a surge in food prices during the week, significantly impacting economic growth.

YoY, the inflation rate recorded a staggering increase of 42.86%, with a substantial rise (of 1,180.58%) in pipelined gas prices being the primary driver. Out of 51 items, prices of 19 increased, 9 decreased, and 23 remained unchanged during the week. Tomatoes experienced a notable surge of 16.04%, followed by a 13.98% increase in chicken prices.

Read Stocks slip over high inflation reading

Despite efforts, Pakistan has struggled to curb inflation, partly due to rising commodity prices in global markets, affecting its imports. The benchmark monthly inflation spiked by 29.7% in Dec 2023, surpassing the government’s projection of 27.5-28.5%, driven by increases in power prices and the housing index. Monthly inflation in the first half of FY24 hovered around 30%, exceeding the SBP’s initial forecast of 20-22% for the full year. The government’s decision to raise gas tariffs by up to 193% in Nov 2023 also contributed to inflationary pressure.

Published in The Express Tribune, January 6th, 2024.

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