Pakistan’s weekly inflation soars beyond 44%

In the latest economic developments, Pakistan has witnessed a surge in weekly inflation for the third consecutive week, marked by a notable increase in the Sensitive Price Indicator (SPI) for the Combined Group.

The SPI for the said group witnessed a significant rise of 1.36 per cent week over week (WoW) during the week concluded on January 11, 2024.

Adding to the economic landscape, the SPI showcased a remarkable year-over-year (YoY) increase of 44.16 per cent, comparing the current statistics with the corresponding period from the previous year.

Last week’s SPI for the Combined Group demonstrated a WoW increase of 0.81 per cent.

Data released by the Pakistan Bureau of Statistics (PBS) reveals that the combined index stood at 317.92 in comparison to 313.66 on January 4, 2024.

Notably, this index was recorded at 220.53 a year ago, specifically on January 12, 2023.

Among the 51 items analysed, 21 experienced an increase in average prices, while prices for 8 items decreased, and 22 items remained stable.

The noteworthy price hikes during the week were observed in tomatoes (15.63 per cent), onions (8.94 per cent), chicken (6.42 per cent), electricity charges for Q1 (5.11 per cent), and eggs (4.31 per cent).

Conversely, significant decreases were noted in the prices of potatoes (5.92 per cent), vegetable ghee (1 KG) (0.84 per cent), sugar (0.43 per cent), vegetable ghee (2.5 KG) (0.29 per cent), and mustard oil (0.26 per cent).

The weekly SPI percentage change, when categorised by income groups, indicated a uniform increase ranging between 1.2 per cent and 1.34 per cent across all quantiles. The lowest-income group experienced a 1.2 per cent rise, while the highest-income group recorded a 1.34 per cent increase.

On a yearly basis, the analysis of SPI change across various income segments revealed an overall increase ranging from 36.06 per cent to 47.48 per cent.

The lowest-income group witnessed a yearly rise of 36.06 per cent, whereas the highest-income group recorded a significant increase of 42.71 per cent.