Weekly inflation eases in Pakistan as 14 essential item prices fall

ISLAMABAD: Pakistan’s short-term inflation eased slightly for the week ending May 23, with the Sensitive Price Index (SPI) falling 0.29 per cent from the previous week, according to data released Friday by the Pakistan Bureau of Statistics (PBS). On a year-on-year basis, however, prices were up 1.35 per cent.

Out of the 51 essential items tracked by PBS, prices for 13 rose, 14 declined, and 24 remained unchanged.

Key movers

Prices dropped for several food and energy items. Chicken became 7.26 per cent cheaper, while onions and garlic declined by 5.43 per cent and 2.71 per cent respectively. Other notable decreases included LPG (down 2.44 per cent), potatoes (0.95 per cent), mustard oil (0.80 per cent), diesel (0.78 per cent), and various pulses and cooking oils.

Conversely, tomatoes surged 12.01 per cent, and egg prices climbed 8.16 per cent. Increases were also seen in gur (1.50 per cent), bananas (1.00 per cent), wheat flour (0.63 per cent), and a range of pulses and meats.

Annual trends

On an annual basis, chicken prices were up 45.12 per cent, while pulse moong and powdered milk jumped 30.79 per cent and 24.01 per cent, respectively. Sugar, eggs, and LPG also recorded double-digit increases.

However, some key items were significantly cheaper than a year ago. Onion prices plunged nearly 55 per cent, potatoes fell 30.46 per cent, and garlic was down 29.43 per cent. Wheat flour, tomatoes, and electricity tariffs also recorded notable declines.

Impact by income group

Weekly inflation varied slightly across income segments, with the lowest income group seeing a 0.26 per cent decline and the highest income group experiencing a 0.30 per cent fall. On a yearly basis, the increase in inflation ranged from 0.03 per cent to 2.35 per cent across different income groups. The annual SPI rose 0.54 per cent for the lowest income group and 2.35 per cent for the highest.

Commodity prices

The average price of a 50 kg bag of Sona urea fertiliser stood at Rs4,471, down 0.35 per cent from last week and 6.92 per cent lower year-on-year. Cement prices averaged Rs1,418 per 50 kg bag, falling 0.23 per cent from the previous week but still up 14.93 per cent compared to last year.

PBS compiles the SPI weekly to track changes in the prices of essential goods. The index covers 51 items collected from 50 markets in 17 cities across Pakistan.

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