Weekly inflation in Pakistan remains above 40% for sixth consecutive week

In the week concluding on December 21, weekly inflation exhibited a marginal easing but persisted above 40 per cent for the sixth consecutive week. 

Official data released for this week highlighted heightened consumer costs for eggs, firewood, and pulses. 

The Pakistan Bureau of Statistics (PBS) revealed a 0.51 per cent decline in the Sensitive Price Indicator (SPI) from the previous week, attributed to lower prices of potatoes, petrol, diesel, tomatoes, and sugar.

Despite this reduction, the SPI inflation rate remained notably high at 43.16 per cent, surpassing last year’s figure of 42.68 per cent for the same week. 

This elevated inflation has adversely impacted the purchasing power of consumers, particularly those in lower and middle-income brackets. 

The decline in SPI was driven by significant drops in the prices of potatoes (13.17 per cent), petrol (4.97 per cent), diesel (4.68 per cent), tomatoes (3.45 per cent), sugar (1.16 per cent), and other essential items.

Conversely, considerable increases were observed in the prices of eggs (10.4 per cent), firewood (1.23 per cent), onions (1.19 per cent), and various pulses. 

Out of the 51 essential items in the SPI, 35.29 per cent experienced price increases, 17.65 per cent saw decreases, and 47.06 per cent remained stable during the week.

ConsumeRsin the lowest income bracket, earning up to Rs17,732 per month, faced a substantial SPI inflation rate of 35.13 per cent. 

Meanwhile, the higher-income group, spending more than Rs44,175 per month, encountered an even higher SPI inflation rate of 40.93 per cent. 

The middle quintile, ranging from Rs22,889 to Rs29,517, experienced a weekly inflation rate of 46.46 per cent.

Various consumer goods displayed a mix of price increases, decreases, and stability, as indicated by the latest PBS data. 

Notably, the price of a dozen eggs rose by 10.42 per cent, reaching Rs388.7, while firewood’s 40kg bundle increased by 1.23 per cent, totaling Rs1146. 

Onion prices rose by 1.2 per cent, and various pulses witnessed increases.

In contrast, potato prices per kilogramme dropped significantly by 13.17 per cent, reaching Rs76.8/kg, and petrol recorded a decrease of 4.97 per cent per litre, settling at Rs268.41. Hi-Speed Diesel also saw a decline of 4.68 per cent, reaching Rs277.29 per litre. 

Tomatoes and refined sugar experienced decreases of 3.45 per cent and 1.16 per cent, respectively.

Several essential commodities, including bread, beef, mutton, and various household items, maintained stable prices during the week with no significant fluctuations.