SPI inflation dips slightly but still above 40pc for sixth week

KARACHI: The weekly inflation eased slightly in the week ending December 21, but remained above 40 percent for the sixth consecutive week, as consumers faced soaring prices of eggs, firewood and pulses, official data showed on Friday.

The Sensitive Price Indicator (SPI) fell by 0.51 percent from the previous week, mainly due to lower prices of potatoes, petrol, diesel, tomatoes and sugar, the Pakistan Bureau of Statistics (PBS) data showed.

However, the SPI inflation rate was still a staggering 43.16 percent, compared to the same week last year, when it was 42.68 percent. The high inflation has eroded the purchasing power of consumers, especially those in the lower and middle income groups.

The SPI inflation fell due to a notable reduction in the prices of potatoes 13.17 percent, petrol super 4.97 percent, diesel 4.68 percent, tomatoes 3.45 percent, sugar 1.16 percent, and other essential items.

On the contrary, significant increases were observed in the prices of eggs 10.4 percent, firewood whole 1.23 percent, onions 1.19 percent, and various pulses.

Out of the 51 essential items included in the SPI, prices of 18 items (35.29 percent) increased, nine items (17.65 percent) decreased, and 24 items (47.06 percent) remained stable during the week.

Individuals in the lowest income bracket, earning up to Rs17,732 per month, faced a substantial SPI inflation rate of 35.13 percent. In contrast, for those in the higher income group spending more than Rs44,175 per month, the SPI inflation was even higher, reaching 40.93 percent. The middle quintile, ranging from Rs22,889 to Rs29,517, experienced a weekly inflation rate of 46.46 percent.

Various consumer goods witnessed a mix of increases, decreases, and stability, according to the latest data released by the Bureau of Statistics.

The price of a dozen eggs rose by 10.42 percent, reaching Rs388.7, compared to the previous week. A slight increase of 1.23 percent was observed in the price of a 40 kg bundle of firewood, totaling Rs1146. Onions price also increased by 1.2 percent, and its per kg price remained relatively stable at Rs163. Similarly, pulses prices also increased including moong (washed) increased by 0.88 percent to Rs287/gg, gram pulse by 0.8 percent to Rs240/kg, and mash pulse (washed) by 0.73 percent to Rs531/kg.

Whereas, the prices of potatoes per kilogram dropped significantly by 13.17 percent, reaching Rs76.8/kg compared to Rs88.46/kg in the previous week. Likewise, petrol recorded a decrease of 4.97 percent per liter, settling at Rs268.41, down from Rs282.44 in the previous week. Hi-Speed Diesel price per liter also saw a decline of 4.68 percent, dropping to Rs277.29 from Rs290.89 in the previous week. Besides, tomato prices also decreased by 3.45 percent, reaching Rs108 per kilogram and refined sugar experienced a slight dip of 1.16 percent, settling at Rs141.76 per kilogram.

Several essential commodities, including bread, beef, mutton, and various household items, maintained stable prices during the week, showing no significant fluctuations.