Short-term inflation jumps 4.07% on higher gas, electricity, and food prices

ISLAMABAD: Short-term inflation in Pakistan spiked by 4.07 per cent during the week ending July 24, largely driven by a sharp increase in utility charges and food prices, according to data released by the Pakistan Bureau of Statistics (PBS) on Friday.

The increase was mainly fuelled by a 29.85 per cent surge in gas bills for the first quarter, followed by a 22.93 per cent hike in tomato prices and a 21.46 per cent rise in electricity charges for the same period. Other notable increases included eggs, garlic, cigarettes, beef, and various dairy items.

The weekly Sensitive Price Index (SPI), which tracks the price movement of 51 essential items across 50 markets in 17 cities, showed that prices of 14 items rose, 12 declined, and 25 remained unchanged during the period under review.

Among food staples, prices of chicken dropped by nearly 8 per cent, sugar by 4.25 per cent, and onions by over 3 per cent. Potatoes, LPG, wheat flour, and some pulses also saw mild relief.

On a year-on-year basis, the SPI increased by 2.22 per cent compared to the same week last year. The steepest annual rise was recorded in the price of ladies’ sandals, which jumped by over 55 per cent. Gas charges, sugar, pulses, beef, and cooking oil products also posted double-digit increases.

However, some essential kitchen items showed significant declines over the year. Onion prices plunged by 49.13 per cent, tomatoes by 30.20 per cent, and garlic by 23.64 per cent. A notable 24.23 per cent drop was also recorded in electricity charges for the first quarter, while prices of tea, wheat flour, and potatoes declined moderately.

Inflation also varied across income groups. Weekly inflation hit the lowest-income households the hardest, with a 3.98 per cent rise, compared to a 3.03 per cent increase for the highest earners. Over the year, the SPI rose by 1.64 per cent for the lowest income group and by 2.37 per cent for the highest.

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