SPI soars: Pakistanis face third week of rising weekly inflation

WEB DESK: In economic developments, Pakistan’s weekly inflation has marked a persistent uptrend, rising for the third consecutive week.

The Sensitive Price Indicator (SPI) for the Combined Group surged by 1.36 per cent WoW during the week ending January 11, 2024. This indicates continual inflationary pressure on essential commodities.

Comparing year-on-year data, the SPI exhibited a substantial increase of 44.16 per cent, reflecting a significant inflationary gap when compared to the corresponding period from the previous year.

Last week’s SPI for the Combined Group also experienced an upward trajectory, rising by 0.81 per cent.

Data released by the Pakistan Bureau of Statistics (PBS) reveals that the combined index stood at 317.92, up from 313.66 on January 4, 2024. A stark contrast emerges when compared to a year ago, with the index recorded at 220.53 on January 12, 2023.

Among the 51 items monitored, 21 saw an average price increase, while 8 items witnessed a decrease, and 22 items remained stable. Notable price hikes were observed in tomatoes (15.63 per cent), onions (8.94 per cent), chicken (6.42 per cent), electricity charges for Q1 (5.11 per cent), and eggs (4.31 per cent).

Conversely, major decreases were noted in the prices of potatoes (5.92 per cent), vegetable ghee (1 KG) (0.84 per cent), sugar (0.43 per cent), vegetable ghee (2.5 KG) (0.29 per cent), and mustard oil (0.26 per cent).

Analysing the SPI percentage change by income groups, it is evident that inflationary pressures affected all quantiles, ranging between 1.2 per cent and 1.34 per cent on a weekly basis. The lowest-income group experienced a 1.2 per cent increase, while the highest-income group recorded a rise of 1.34 per cent.

On a yearly basis, SPI change across income segments showed increases ranging between 36.06 per cent and 47.48 per cent, with the lowest income group witnessing a 36.06 per cent rise and the highest income group recording an increase of 42.71 per cent.

Specifically, the average price of Sona urea was reported at Rs 4,622 per 50 kg bag, marking a 0.07 per cent increase from the previous week and a substantial 66.35 per cent rise compared to the same period last year.

Meanwhile, the average cement price was recorded at Rs1,221 per 50 kg bag, reflecting a 0.39 per cent decrease from the previous week but still indicating a 17.17 per cent increase compared to prices last year. These figures underscore the intricate dynamics contributing to the current economic landscape in Pakistan.

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