Weekly inflation surges 15.16% YoY

War spillover effects push SPI up by 0.79% WoW; fuel, power prices soar

KARACHI:

The Sensitive Price Indicator (SPI), which monitors weekly inflation, has been on a sharp upward trajectory for many weeks, largely due to spillover effects of the Israel-US war on Iran. For the week ended May 7, 2026, it surged 15.16% compared to the same week of last year.

On a year-on-year basis, a major increase was recorded in prices of petrol, which surged 58.32%, diesel, higher by 55.76%, Q1 electricity charges 52.58%, wheat flour 50.65%, liquefied petroleum gas (LPG) 48.82% and onions 41.97%. Prices of mutton, chilli powder, garlic, beef, powdered milk and bananas also increased.

Meanwhile, prices of potatoes declined 44.58%, pulse gram fell 20.29%, sugar 13.76%, salt powder 13.26%, pulse masoor 11.74%, eggs 7.88%, chicken 1.80% and pulse moong 1.60% over the same period of last year, the Pakistan Bureau of Statistics (PBS) reported.

The SPI-based week-on-week (WoW) inflation increased 0.79% during the week ended May 7, 2026 for the combined consumption group. Its reading rose to 357.04 points as compared to 354.23 points in the previous week.

The SPI covers 17 urban centres and 51 essential items for all expenditure groups. For the lowest consumption group (up to Rs17,732 per month), the index rose 0.69%. For the consumption groups of Rs17,733-22,888, Rs22,889-29,517, Rs29,518-44,175, and above Rs44,175, the indicator increased 0.77%, 0.76%, 0.83% and 0.80%, respectively.

During the week under review, out of 51 items, prices of 22 items (43.14%) increased, 14 items (27.45%) decreased, while 15 items (29.41%) remained stable.

A major WoW increase was observed in prices of chicken, which rose 12.82%, followed by diesel, up 5.10%, wheat flour 3.42%, petrol 1.66%, curd 1.63%, fresh milk 1.33%, beef 0.65%, tea prepared 0.53%, mutton 0.50%, potatoes 0.48%, washing soap 0.12% and cigarettes 0.08%.

On the other hand, prices of tomatoes dropped 7.08%, garlic dipped 1.91%, eggs 1.22%, LPG 1.08%, pulse masoor 0.43%, onions 0.38%, pulse gram 0.36%, Irri-6/9 rice 0.30% and gur 0.19%.