PBS data reveals first decline in SPI inflation in five weeks

LAHORE: For the first time in five weeks, Pakistan experienced a drop in weekly inflation, largely due to a reduction in electricity charges compared to the previous week.

The Weekly Sensitive Price Indicator (SPI) for the Combined Group fell by 0.12 per cent week-on-week (WoW) for the period ending August 1, 2024. However, the SPI increased by 18.41 per cent year-on-year (YoY) compared to the same period last year.

Data from the Pakistan Bureau of Statistics (PBS) indicates that the Combined Index stood at 321.56, down from 321.95 the previous week, and up from 271.56 a year ago.

During the week, out of 51 items surveyed, prices for 24 items (47.06 per cent) increased, 7 items (13.72 per cent) decreased, and 20 items (39.22 per cent) remained unchanged.

Notable decreases were observed in the prices of electricity charges for Q1 (15.80 per cent), bananas (4.87 per cent), diesel (3.81 per cent), petrol (2.23 per cent), and wheat flour (0.98 per cent).

This decline follows a Rs50 billion relief package announced by Prime Minister Shehbaz Sharif, aimed at providing temporary relief to domestic electricity consumers using up to 200 units per month, effective until October.

Conversely, significant price increases were recorded for chicken (5.91 per cent), eggs (1.58 per cent), cooked daal (1.05 per cent), pulse gram (0.78 per cent), and cooked beef (0.53 per cent).

The SPI changes by income groups showed variability: the SPI increased for two quantiles while it decreased for three, ranging from -1.36 per cent to 0.8 per cent. The lowest income group experienced a weekly decrease of 0.9 per cent, while the highest income group saw a rise of 0.8 per cent.

On a yearly basis, SPI rose across all income segments, ranging from 11.48 per cent to 20.85 per cent. The lowest income group saw a yearly increase of 11.48 per cent, whereas the highest income group experienced a rise of 17.56 per cent.

Additionally, the average price of Sona urea was Rs4,759 per 50 kg bag, representing a 0.46 per cent decrease from the previous week but a 39.64 per cent increase from last year.

The average price of cement fell to Rs1,454 per 50 kg bag, down by 0.41 per cent week-on-week but up by 27.20 per cent year-on-year.

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