Food prices fuel weekly inflation to 7-month high

ISLAMABAD: Weekly inflation surged to its highest level in more than seven months, official data showed on Friday, as skyrocketing food prices fueled by a depreciating currency and rising energy costs squeezed household budgets.

The Sensitive Price Indicator (SPI), which tracks the prices of 51 essential items, increased by 1.36 percent in the week ending Jan. 11, compared to the previous week, according to the Pakistan Bureau of Statistics (PBS).

The SPI inflation rate jumped to 44.16 percent on a year-on-year basis, the highest since May 2023. In the preceding week, ending January 4, the SPI had been recorded at 42.86 percent. The SPI has been above 40 percent for nine consecutive weeks, reflecting the persistent inflationary pressures in the economy.

The main contributors to the weekly inflation were food items, especially tomatoes, onions, chicken, eggs, and pulses, which saw double-digit price hikes. Electricity charges, LPG cylinders, and matchboxes also became more expensive.

The latest data from the Pakistan Bureau of Statistics (PBS) indicated a mixed trend in food item prices, with some experiencing reductions while others saw increases. For individuals in the lowest income slab, earning up to Rs17,732 per month, the SPI inflation stood at 36.06 percent, while for those in the group spending more than Rs44,175 per month, it was recorded at 42.71 percent.

Out of 51 items monitored by SPI for price movement, 21 items (41.18 percent) witnessed an increase, eight items (15.68 percent) recorded a decrease, while prices of 22 items (43.14 percent) remained stable.

During the week, notable price hikes were observed in various commodities in Pakistan. Tomatoes prices surged by 15.6 percent to Rs144/kg, onions by 8.9 percent to Rs211/kg, chicken farm (live) by 6.4 percent to Rs436/kg, electricity charges for Q1 by 5.1 percent to Rs7.4/unit, eggs farm by 4.3 percent to Rs417/dozen, matchbox by 2.56 percent to Rs6/box. Similarly, gur price increased by 2.3 percent to Rs208/kg, LPG 11.67kg cylinder by 2.3 percent to Rs3355, gram pulse by 2.1 percent to Rs258/kg, energy saver by 1.4 percent to Rs354, mash pulse by 0.8 percent to Rs536/kg, and rice IRRI-6/9 by 0.67 percent to Rs167/kg.

Conversely, a decrease was observed in the prices of potatoes by 5.9 percent to Rs60/kg, vegetable ghee 1 KG by 0.84 percent to 502/kg, sugar by 0.43 percent to Rs146/kg,vegetable ghee 2.5 KG tin by 0.29 percent to Rs1311, mustard oil by 0.26 percent to Rs502/kg, and cooking oil 5 Litre reduced by 0.17 percent to Rs2757.

On a year-on-year basis, gas charges for Q1 increased by 1108.6 percent, tomatoes by 155.8 percent, cigarettes by 93.2 percent, chilies powder by 81.7 percent, garlic by 60.4 percent, gents’ sponge chappal by 58 percent, sugar by 57 percent, wheat flour by 55 percent, gents’ sandal by 53 percent, rice IRRI-6/9 by 52 percent, gur by 51 percent, and broken basmati rice by 47 percent. Whereas, a decrease was observed in the prices of mustard oil at 7.1 percent, onions at 6.7 percent, vegetable ghee 1-KG at 1.7 percent, and bananas at 1.5 percent.