Food costs push weekly inflation to 44.64pc y/y, highest since May

ISLAMABAD: The weekly inflation rate reached an eight-month high of 44.64 percent year-on-year in the week ending January 18, driven by soaring food prices, official data showed on Friday.

The Sensitive Price Index (SPI), which measures weekly changes in the prices of 51 essential commodities, rose by 0.34 percent over the previous week, marking the fourth consecutive week of increase, Pakistan Bureau of Statistics (PBS) data showed.

The SPI has been above 40 percent for ten consecutive weeks, reflecting the persistent inflationary pressures in the economy. In the preceding week, ending January 11, the SPI had been recorded at 44.16 percent.

The main contributors to the rise in the SPI were onions, tomatoes, chicken, eggs, and pulses, which saw significant price hikes during the week. For individuals in the lowest income slab, earning up to Rs17,732 per month, the SPI inflation stood at 37.23 percent, while for those in the group spending more than Rs44,175 per month, it was recorded at 42.8 percent.

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

During the week, notable price hikes were observed in various commodities in Pakistan. Onions prices surged by 8.7 percent to Rs229/kg, tomatoes by 7.5 percent to Rs154/kg, energy saver by 2.7 percent to Rs363/unit, chicken farm (live) by 2.3 percent to Rs446/kg, garlic Rs595/kg, Bananas 2.14 percent 122/dozen, eggs 1.9 percent to Rs425/dozen, matchbox 1.7 percent to Rs6.1/box, mash pulse 1.6 percent to Rs545/kg and masoor pulse price increased by 1.5 percent to Rs304/kg.

However, potatoes prices decreased by 3.85 percent to Rs58/kg, petrol by 2.99 percent to Rs260.4/liter, sugar by 0.90 percent to Rs145/kg, tea Lipton by 0.20 percent to Rs565/190gm packet, and vegetable ghee of 2.5 KG tin prices reduced by 0.14 percent to Rs1,310.

On a year-on-year basis, gas charges for Q1 increased by 1108.6 percent, tomatoes by 183 percent, cigarettes by 93.2 percent, chilies powder by 81.7 percent, wheat flour by 65 percent, garlic by 60.4 percent, gents’ sponge chappal by 58 percent, sugar by 57 percent, gents’ sandal by 53 percent, rice IRRI-6/9 by 50 percent, gur by 49 percent, and eggs by 48 percent. Whereas, a decrease was observed in the prices of mustard oil at 6.9 percent, bananas by 2.4 percent, onions by 2 percent, and vegetable ghee 1-KG at 1.2 percent.