Weekly inflation up as essential items become pricier

ISLAMABAD: Pakistan’s short-term inflation has shown a slight uptick of 0.22 per cent in the past week, according to a report by the Pakistan Bureau of Statistics (PBS) on Friday. However, when compared to the same period last year, inflation has dropped by 1.97 per cent, signalling some relief on an annual basis.

Out of 51 essential commodities tracked by PBS, 12 items (23.53 per cent) saw price increases, 15 items (29.41 per cent) experienced price drops, while 24 items (47.06 per cent) remained unchanged. This mixed trend reflects both inflationary pressures and easing costs in different areas.

The most significant weekly price hikes were recorded in everyday items like tomatoes, which saw a staggering 36.43 per cent increase, followed by chicken (6.40 per cent), bananas (6.05 per cent), and sugar (5.69 per cent). The price of LPG (liquefied petroleum gas) rose by 1.44 per cent, while common food items such as bread, beef, and pulse moong also saw slight upticks.

Conversely, there was some respite in the prices of onions, which dropped sharply by 16.71 per cent, followed by potatoes (6.59 per cent), garlic (5.29 per cent), and several pulses like gram and mash, alongside a slight dip in tea prices.

When looking at the broader year-on-year trend, certain commodities have become significantly more expensive. Ladies’ sandals led the list with a staggering 75.09 per cent increase, followed by pulse moong (26.84 per cent), powdered milk (25.93 per cent), and beef (21.35 per cent). Other notable annual increases were seen in sugar (18.55 per cent) and vegetable ghee, which rose by over 16 per cent for both 1kg and 2.5kg packs.

On the flip side, major relief came in the form of sharp price decreases in onions (72.32 per cent) and tomatoes (51.96 per cent), along with reductions in wheat flour, chilies, and fuel prices. Petrol prices dropped by 8.55 per cent, while diesel decreased by nearly 10 per cent, offering some relief to consumers.

Interestingly, the weekly inflation impact varied across income groups. The lowest income group saw a marginal increase of 0.10 per cent, while the highest income bracket experienced a slightly higher rise of 0.25 per cent. However, on an annual basis, inflation dropped by 3.25 per cent for the lowest income group and by 1.04 per cent for the highest income earners.

In terms of construction materials, the price of urea fertiliser saw a minor weekly increase of 0.03 per cent, standing at Rs4,526 per 50 kg bag, while cement prices went up by 0.07 per cent, with the average price now at Rs1,342 per 50 kg bag.

PBS calculates short-term inflation using the Sensitive Price Indicator (SPI) on a weekly basis, which monitors the prices of 51 essential items from 50 markets across 17 cities, providing an up-to-date overview of price movements and the cost-of-living situation in Pakistan.