Weekly inflation declines for fifth consecutive week in Pakistan

WEB DESK: The Weekly Sensitive Price Indicator (SPI) for the Combined Group in Pakistan has shown a decline, decreasing by 1.06 per cent week-on-week (WoW) during the week ending on May 16, 2024.

Despite this short-term relief, the SPI still reflects a 21.22 per cent year-on-year (YoY) increase compared to the same period last year.

This marks the fifth consecutive week of declining inflation, providing some respite to consumers who have been grappling with high prices.

According to the latest data released by the Pakistan Bureau of Statistics (PBS), the Combined Index stood at 309.25, down from 312.56 the previous week, yet significantly higher than the 255.12 recorded a year ago.

Throughout the week, price changes were observed in various commodities. Out of 51 monitored items, prices for 20 items (39.22 per cent) increased, 16 items (31.37 per cent) decreased, and 15 items (29.41 per cent) remained stable.

Notably, significant price drops were seen in tomatoes (31.18 per cent), onions (21.84 per cent), garlic (7.76 per cent), petrol (5.32 per cent), and wheat flour and LPG (3.66 per cent). Conversely, the prices of cooked daal (1.96 per cent), shirting (1.74 per cent), potatoes (1.46 per cent), beef (1.11 per cent), and mutton (1.04 per cent) saw notable increases.

The SPI’s weekly percentage change by income groups revealed a decrease across all quantiles, ranging from -1.02 per cent to -1.17 per cent. The lowest income group experienced a 1.17 per cent decline, while the highest income group saw a 1.06 per cent decrease.

Year-on-year, the SPI change across different income segments showed an increase across all quantiles, ranging from 14.54 per cent to 24.58 per cent. The SPI for the lowest income group increased by 14.54 per cent, while the highest income group recorded a 19.07 per cent rise.

In related commodity prices, the average price of Sona urea stood at Rs4,839 per 50 kg bag, which is 0.06 per cent higher than the previous week and 56.44 per cent higher than last year.

Similarly, the average cement price was recorded at Rs1,210 per 50 kg bag, marking a 0.55 per cent increase from the previous week and an 8.62 per cent rise from the prices a year ago.

This ongoing trend of weekly inflation reduction brings a glimmer of hope to the masses, even as the annual inflation rate continues to pose challenges.

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