Weekly inflation rises 1.28% as essential food items, fuel costs surge

In a challenging economic climate, food prices in Pakistan have surged, forcing consumers to purchase essential items at elevated costs.

According to the Weekly Sensitive Price Indicator (SPI) released by the Pakistan Bureau of Statistics (PBS), the SPI for the Combined Group increased by 1.28 per cent week-on-week (WoW) for the week ending July 4, 2024.

 Additionally, the SPI saw a substantial year-on-year (YoY) rise of 23.59 per cent compared to the same period last year.

The PBS data revealed that the Combined Index stood at 318.61, up from 314.57 a week earlier, and significantly higher than the 257.79 recorded a year ago. Out of 51 monitored items, prices of 29 (56.86 per cent) increased, 5 (9.80 per cent) decreased, and 17 (33.34 per cent) remained stable during the week.

Significant weekly price increases were observed in tomatoes (70.77 per cent), wheat flour (10.57 per cent), powdered milk (8.90 per cent), diesel (3.58 per cent), and petrol (2.88 per cent). Conversely, notable price hikes on a yearly basis were recorded for onions (9.05 per cent), wheat (1.79 per cent), potatoes (1.04 per cent), eggs (0.79 per cent), and bananas (0.60 per cent).

The SPI percentage change by income groups showed that the SPI rose across all income quantiles, ranging from 1.23 per cent to 1.44 per cent weekly. The lowest income group experienced a weekly rise of 1.43 per cent, while the highest income group saw a 1.23 per cent increase.

Yearly SPI analysis across different income segments indicated increases ranging between 16.97 per cent and 26.49 per cent. The SPI for the lowest income group rose by 16.97 per cent, while the highest income group recorded a 21.39 per cent increase.

Additionally, the average price of Sona urea was reported at Rs4,746 per 50 kg bag, which is 0.13 per cent higher than the previous week and 51.52 per cent higher compared to last year.

Meanwhile, the average cement price reached Rs1,409 per 50 kg bag, marking a significant 10.48 per cent increase from the previous week and a 23.16 per cent rise from last year’s prices.

The persistent rise in food and essential item prices continues to burden Pakistani consumers, exacerbating the financial strain on households across the country.