Weekly inflation climbs on higher prices of 18 key commodities

KARACHI: The Sensitive Price Indicator (SPI), which measures short-term inflation, increased by 0.62 percent for the week ending August 28, 2025, according to the latest data released by the Pakistan Bureau of Statistics (PBS).

The uptick was largely driven by sharp increases in the prices of essential food items, particularly tomatoes, wheat flour, and chicken.

Food prices push inflation upward

PBS data showed that the highest jump was recorded in tomato prices, which surged by 14.98 percent in a single week. Wheat flour also became costlier, with prices increasing by 12.11 percent, while chicken rates rose by 3.36 percent. Potatoes (1.52 percent), mustard oil (1.37 percent), eggs (1.03 percent), garlic (0.78 percent), and cooked beef (0.81 percent) also contributed to the upward pressure on inflation.

On the non-food side, liquefied petroleum gas (LPG) registered a weekly increase of 0.82 percent, while prices of lawn-printed cloth and firewood rose by 0.23 percent and 0.17 percent, respectively.

In contrast, some relief was noted in a handful of items. Prices of pulses, bananas, and onions edged down slightly. Pulse mash fell by 0.43 percent, pulse masoor and pulse gram each declined by 0.28 percent, bananas by 0.12 percent, vegetable ghee (2.5 kg tin) by 0.10 percent, and onions by 0.01 percent.

Out of the 51 essential commodities tracked by PBS, 18 items saw price increases, 6 registered declines, while 27 remained unchanged.

Year-on-year inflation trend

Compared with the same week last year, the SPI showed a 3.57 percent increase. The sharpest annual jump was recorded in the price of ladies’ sandals, which rose by 55.62 percent. Gas charges for the first quarter increased by 29.85 percent, sugar by 26.91 percent, and beef by 12.99 percent.

Other notable annual increases were seen in gur (12.18 percent), bananas (11.78 percent), moong pulse (11.74 percent), vegetable ghee (up to 11.36 percent for 2.5 kg tin), firewood (11.47 percent), and cooked beef (8.93 percent).

On the other hand, onions provided the biggest relief with prices down by 49.31 percent year-on-year, followed by garlic (-25.98 percent), pulse mash (-23.39 percent), potatoes (-19.96 percent), pulse gram (-18.54 percent), and tea (-17.93 percent). Electricity charges for Q1 also dropped by 18.12 percent.

Impact on income groups

The SPI data by consumption quintiles revealed that the weekly inflation was most pronounced for lower-income households. For the poorest segment (Q1), inflation increased by 0.84 percent, while the second quintile saw a 0.83 percent rise.

The middle-income group experienced a 0.73 percent increase, and the fourth quintile saw prices go up by 0.69 percent. The highest-income group recorded the lowest increase of 0.51 percent.

On an annual basis, the middle-income groups bore the brunt of inflation, with increases between 3.94 percent and 4.18 percent. In comparison, the wealthiest group recorded a smaller annual rise of 2.61 percent.

Inflationary trend in recent weeks

The PBS report also highlighted the inflationary trend over the past two months. The SPI had risen significantly in late July, posting a 4.07 percent weekly jump, before slowing down in early August. Since then, the weekly index has shown consistent, albeit smaller, increases, culminating in this week’s 0.62 percent rise.

The latest figures suggest that food prices remain the main driver of weekly inflation, particularly perishables such as tomatoes, potatoes, and poultry. The continuing volatility in essential commodities poses challenges for households, especially those in lower income brackets.

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