Prices of 18 essentials rise despite falling weekly inflation

ISLAMABAD: Short-term inflation recorded a slight decline of 0.26 per cent this week after three consecutive weeks of increases, yet the prices of 18 essential commodities continued to rise.

The latest data from the Pakistan Bureau of Statistics (PBS) indicates that while 18 items became more expensive, 10 saw price reductions, and 23 remained stable.

Among the notable increases, chicken prices surged by 10.28pc, onions rose by 4.93pc, sugar became 0.95pc more expensive, and ghee prices climbed by 0.28pc over the past week.

Conversely, tomatoes recorded a significant 13.48pc decline, potatoes dropped by 5.59pc, eggs by 0.23pc, and lentils (mash) by 0.05pc. On the other hand, prices of chickpea lentils (chana dal) and flour also saw reductions.

According to the PBS report, despite the drop after three weeks, the overall year-on-year inflation rate for essential goods depicts increase of 3.97pc.

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This follows a trend of increasing inflation in previous weeks. In the week ending December 27, short-term inflation rose by 0.8pc on a weekly basis and 5.8pc annually. Similarly, for the week ending December 19, inflation had risen by 0.38pc weekly and 4.64pc annually.

Meanwhile, the Pakistani rupee (PKR) saw a slight improvement against the US dollar (USD), appreciating by 0.08 per cent during early trading on Friday.

In the morning, the rupee was trading at Rs278.43, up by 21 paisa from the previous day’s closing, marking a minor gain on the last trading day of the week.

For context, during the current fiscal year, the PKR has depreciated by 30.11 paisa or 0.11 per cent against the USD.

Since the beginning of 2025, it has fallen by 9.23 paisa or 0.03 per cent, which reflects its performance over the first two trading sessions of the calendar year.

Globally, the US dollar was set to record its best weekly performance in over a month as of Friday, buoyed by expectations of fewer interest rate cuts by the Federal Reserve this year. There is also a prevailing belief that the US economy will continue to outperform other major economies.