Pakistan’s inflation witnesses massive hike

ISLAMABAD: According to data released on Friday, the weekly inflation experienced a significant year-on-year increase of 29.83 per cent for the week ending on August 3. This surge was attributed to a sharp rise in petroleum and food prices.

Over the course of one week, the short-term inflation, as measured by the Sensitive Price Index (SPI), experienced a significant rise of 1.30 per cent. This marks the second-highest increase recorded in the past two months.

During the same period, the retail prices of petrol, diesel, and LPG increased by 7.86 per cent, 7.82 per cent, and 9.82 per cent, respectively.

Read more: Inflation projected to decrease to 7% by 2025, Dar claims

Of the 51 items in the SPI basket, prices of 23 goods soared, seven dropped and 21 remained unchanged compared to the previous week.

During the week being reviewed, several items experienced significant price increases compared to the same week the previous year. The most notable price surges were observed in the following commodities: wheat flour (131.40 per cent), cigarettes (109.57 per cent), gas charges for Q1 (108.38 per cent),  tea (97.71 per cent), rice basmati broken (82.86 per cent), rice Irri-6/9 (72.73 per cent), tomatoes (67.54 per cent), chilli powder (66.74 per cent), sugar (64.12 per cent), chicken (60.51 per cent), gents sponge chappal (58.05 per cent), gur (57.75 per cent), and potatoes (55.75 per cent).

The continuous and substantial rise in petroleum and oil prices in the last eighteen months has been a significant factor leading to the overall increase in costs. This upward trend in prices directly impacts commuters, as they have to face the burden of higher transportation expenses. Consequently, managing daily expenditures becomes more difficult for them, especially concerning essential items like food products.