Lower electricity, chicken, LPG prices bring weekly inflation down

ISLAMABAD: The week ending on May 29 saw the weekly inflation a 0.81 per cent decrease thanks to substantial decline in the chicken and LPG prices in Pakistan, the latest figures released by the country’s top statistical organisation.

During the past week, the Pakistan Bureau of Statistics (PBS) says, the power tariff was down 10.10 per cent. It was followed by a chicken 8.81 per cent and LPG 2.67 per cent.

It is the SPI [Sensitive Price Indicator – sometimes also referred as index], through which the inflation movement is observed in Pakistan.

On the other hand, the CPI (Consumer Price Index) is the measure globally to determine the inflation rate in a month.

The downward movement comes despite the fact that some edible items, including tomatoes as well as eggs and pulses, witnessed a major increase. However, the substantial decline in electricity, chicken and LPG prices nullified that increase.

Earlier, Pakistan recorded just 0.3 per cent inflation in April, after the CPI had touch an unprecedented all-time high of 38 per cent in May 2023.    

CHANGE IN DIRECTION

Earlier, JS Global – a brokerage firm – had said in a report that Pakistan was expected to see a modest rise in consumer prices in May, after a period of unusually low inflation. 

Similarly, the Ministry of Finance said in its Monthly Economic Update and Outlook for May that inflation was expected to remain between 1.5 per cent to 2 per cent in May. In June, it may climb to 3 per cent to 4 per cent, it added