Consumer relief as prices drop: weekly inflation records 0.28% decrease

WEB DESK: In a significant development, the Weekly Sensitive Price Indicator (SPI) for the Combined Group experienced a noteworthy decline of 0.28 per cent WoW during the week ending February 1, 2024.

However, a more striking observation is the 39.45 per cent YoY increase compared to the corresponding period last year.

This marks the second consecutive weekly decline in prices, indicating a potential trend in the market. Notably, the year-over-year reading has now fallen below the 40 per cent mark for the first time in twelve weeks.

Out of a total of 51 items, the average price analysis reveals that 12 items witnessed an increase, 17 items saw a decrease, and 22 items remained stable. This dynamic fluctuation across various commodities is reflective of the intricate market conditions.

Noteworthy changes in commodity prices

During the week under review, substantial decreases were noted in the prices of tomatoes (18.28 per cent), eggs (7.77 per cent), onions (6.99 per cent), LPG (1.53 per cent), and tea lipton (1.29 per cent).

Conversely, there were noteworthy increases in the prices of petroleum (5.20 per cent), chicken (1.88 per cent), diesel (0.95 per cent), energy savers (0.70 per cent), and bananas (0.68 per cent).

These fluctuations underline the volatility in the prices of essential commodities, impacting consumers across the board.

Income group analysis

The weekly SPI percentage change across income groups revealed a uniform decline, ranging between 0.06 per cent and 0.85 per cent. The lowest income group experienced the most significant decline of 0.85 per cent, while the highest income group recorded a marginal decrease of 0.06 per cent.

On an annual basis, the analysis of SPI change across different income segments demonstrated a consistent increase, ranging between 32.79 per cent and 43.58 per cent. The lowest-income group saw a 32.79 per cent YoY increase, while the highest-income group recorded an increase of 37.33 per cent.

Specific commodity prices

In specific commodity analysis, the average price of Sona urea decreased to Rs4,536 per 50 kg bag, marking a 0.39 per cent decline compared to the previous week but still reflecting a significant 58.19 per cent increase compared to last year.

Meanwhile, the average cement price was recorded at Rs1,209 per 50 kg bag, indicating a 0.3 per cent decrease from the previous week but still reflecting a substantial 14.04 per cent increase compared to last year.

As these trends continue to shape the economic landscape, consumers and stakeholders alike closely monitor these fluctuations for their potential impact on daily life and business operations.

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