Lower prices for tomatoes, flour bring down weekly inflation

WEB DESK: Pakistan’s short-term inflation experienced a slight decline of 0.1 per cent during the week ending August 22, 2024, according to data released by the Pakistan Bureau of Statistics (PBS) on Friday.

However, the annual inflation rate remains significantly high at 16.69 per cent.

The PBS monitors short-term inflation through the Sensitive Price Indicator (SPI), a weekly measure designed to track the price fluctuations of essential commodities across the country. This method allows for a closer analysis of the price situation at shorter intervals.

The SPI is based on a basket of 51 essential items collected from 50 markets across 17 cities. During the reported week, prices of 21 items (41.18 per cent) saw an increase, 9 items (17.64 per cent) decreased in price, while 21 items (41.18 per cent) remained unchanged.

The most notable decreases were recorded in the prices of tomatoes (down 21.96 per cent), wheat flour (down 2.77 per cent), bananas (down 2.08 per cent), onions (down 1.70 per cent), and sugar (down 1.43 per cent).

Conversely, the prices of several items saw an increase, including eggs (up 6.10 per cent), pulse gram (up 6.05 per cent), potatoes (up 2.41 per cent), cooked daal (up 0.89 per cent), and cooked beef (up 0.74 per cent).

An analysis of the SPI across different income groups revealed a decline in weekly inflation across all segments, with the reduction ranging from 0.05 per cent to 0.24 per cent. The lowest income group benefited the most with a 0.24 per cent decrease, while the highest income group saw a more modest decline of 0.05 per cent.

On an annual basis, the SPI showed an increase across all income groups, with the lowest income group experiencing a 10.35 per cent rise, and the highest income group witnessing a 15.71 per cent surge.