Weekly inflation falls 0.04%

KARACHI: Pakistan’s Sensitive Price Indicator (SPI), which tracks the prices of 51 essential commodities across 17 cities, recorded a decline of 0.04 per cent for the week ending February 13, according to data from the Pakistan Bureau of Statistics (PBS).

The dip was driven by a decrease in the prices of key food staples, although some essential goods continued to rise, highlighting persistent inflationary pressures in the economy.

The latest data indicates a notable decline in vegetable prices, with tomatoes falling 8.8 per cent, Lipton Tea (branded tea) dropping 4.46 per cent, onions down 3.97 per cent, and potatoes easing by 1.54 per cent. Other food items that became cheaper included pulse gram (-1.91 per cent), pulse moong (-1.47 per cent), and wheat flour (-0.67 per cent). The price of liquefied petroleum gas (LPG) also dropped by 0.86 per cent, contributing to the overall decline in the SPI.

Conversely, the cost of some key staples increased. The price of bananas surged by 9.37 per cent, followed by a 3.62 per cent rise in chicken, while eggs became 2.38 per cent more expensive. Sugar, garlic, mutton, beef and powdered milk also saw modest price hikes.

Despite the slight weekly decline, annual inflation remains a concern. Compared to the same period last year, the SPI recorded a 0.98 per cent increase, driven largely by sharp rises in the prices of pulses and dairy products. Pulse moong surged 29.15 per cent, pulse gram climbed 27.87 per cent, and powdered milk rose 25.84 per cent. Meat prices also saw significant gains, with beef up 22.75 per cent year-on-year.

Non-food inflation was led by an increase in gas charges, which rose 15.52 per cent over the past year, underscoring the impact of energy costs on household budgets. Meanwhile, footwear prices surged, with ladies’ sandals witnessing a 75.09 per cent increase compared to last year.

While inflationary pressures persist, some items recorded substantial declines over the past year. Onion prices plummeted by 56.58 per cent, tomatoes fell 48 per cent, and wheat flour dropped 37.18 per cent. Chilies powder, electricity charges, and certain pulses also saw significant declines, offering some respite to consumers.