Weekly inflation rises by 0.30pc as food and energy prices spike

KARACHI: Pakistanis get no reprieve as prices of food and energy pushed weekly inflation up to 0.30 percent from 0.11 percent last week and 38.28 percent from 37.07 percent last year, data for the seven-day period ended October 12 showed on Friday.

The Pakistan Bureau of Statistics (PBS) attributed the increase in the sensitive price indicator (SPI) inflation to the rise in prices of electricity for Q1 (8.59 percent), tomatoes (6.28 percent), eggs 3.48 percent), salt (2.75 percent), garlic (1.04 percent), prepared tea (0.73 percent), energy saver (0.55 percent), shirting (0.47 percent), beef (0.39 percent), potatoes (0.35 percent), and LPG (0.31 percent).

On the other hand, major decrease was observed in the prices of sugar (4.47 percent), pulse gram (2.75 percent), bananas (2.47 percent), pulse moong (2.44 percent), gur (1.93 percent), chicken (1.69 percent), rice irri 6/9 (1.46 percent), and pulse masoor (1.26 percent).

For the week under review, SPI was recorded at 282.86 points against 282.00 points registered last week and 204.55 points recorded during the week ended October 13, 2022. PBS compiles SPI via collecting prices of 51 essential items from 50 markets in 17 cities of the country.

During the week, out of 51 items, prices of 19 (37.26 percent) items increased, 16 (31.37 percent) items decreased and 16 (45.10 percent) items remained stable.

Although WoW SPI has remained below one percent in the last 10 consecutive weeks, for the groups spending up to Rs17,732; Rs17,733-22,888; Rs22,889-29,517; Rs29,518-44,175; and above Rs44,175; YoY SPI now stands at 36.64, 39.88, 38.69, 37.47, and 34.33 percent, respectively.

PBS data showed that the highest increase in SPI was once again faced by those spending Rs17,733-22,888, while the lowest impact was witnessed by those spending more than Rs44,175.

Prices of essentials have been increasing consistently for the low and middle income groups. People have started not only compromising on the quality of food, but the quantity too.

A woman standing at a vegetable stall to buy onions and tomatoes asked the vendor to also give ginger worth Rs20. The vendor rudely replied that he cannot give her any ginger for even Rs50, as it was being sold for Rs300/250 grams. Taken aback, the woman pleaded with the vendor to give her whatever he can in Rs20.

“Ginger is being sold at Rs1,200/kg at the main vegetable market,” the vegetable vendor shared, while begrudgingly giving a 4cm by 3cm piece of garlic to the woman. “It is Rs1,200/kg in Karachi, but if you go to Hyderabad, it is being sold for Rs,1500 or more. Garlic is a bit less at Rs150/250 grams,” he added.

Ginger and garlic are used regularly in Pakistani households to prepare different types of curries and rice dishes.

The average price of garlic this week was Rs469.18/kg in Karachi, whereas the highest price recorded was Rs540/kg, as far as the PBS data goes. But prices on the ground are much higher than the official rates recorded by the bureau of statistics.

A shopkeeper in Karachi showed a bag of Indian cardamom and said it costs Rs10,000/kg now. “Previously, we used to buy it for Rs3,000-4,000/kg, but with the issues in trade with India and rupee devaluation, such commodities are now coming via Bangkok, so the prices have gone crazy,” he confided, while trying to sell the aromatic spice to various people standing at the shop.

“Selling expensive spices has become a huge problem as people’s buying power has eroded to a critical level,” he said, while sharing that they are reducing the number of commodities at the shop because of this issue. As per PBS data, YoY SPI trend depicts an increase of 38.28 percent, because of a hike in prices of electricity charges for Q1 (136.89 percent), gas charges for Q1 (108.38 percent), cigarettes (95.36 percent), broken basmati rice (86.21 percent), chilli powder (84.84 percent), wheat flour (79.28 percent), rice irri-6/9 (75.98 percent), sugar (71.87 percent), gur (65.09 percent), salt (60.78 percent), tea (58.75 percent), and gents sponge chappal (58.05 percent).

The PBS noted a YoY decline in the prices of tomatoes (43.53 percent), onions (16.67 percent), pulse gram (4.01 percent), and mustard oil (1.19 percent).