SPI inches up 0.07pc WoW on prices of perishables

KARACHI: Weekly sensitive price indicator (SPI) for the combined income group increased slightly by 0.07 percent week-on-week, while rising 12.28 percent year-on-year during the 7-day period ended July 8, 2021, data showed on Friday.

Inflation report released by the Pakistan Bureau of Statistics (PBS) said the WoW rise was due to the increase in prices of edibles, while the YoY indicator spiked up on account of edibles and fuels. The SPI for the week under review in the above mentioned group was recorded at 150.03 points against 149.93 points registered in the previous week.

During the week, prices of 23 items increased, 9 decreased, while prices of 19 items remained unchanged.

Ismail Iqbal Securities in its research report said, “SPI inflation remained muted past week.”

For the current week, PBS recorded a rise in prices of tomatoes (11.51 percent), garlic (8.31 percent), onions (4.85 percent), sugar (2.60 percent), potatoes (2.04 percent) and eggs (1.67 percent).

The joint impact on WoW inflation came up to 0.40 percent in overall SPI for the combined income group.

Decrease was recorded in the prices of chicken (12.97 percent), bananas (3.72 percent), pulse moong (1.81 percent), pulse mash (0.51 percent), pulse masoor (0.34 percent), wheat flour (0.22 percent), powdered milk (0.07 percent), mustard oil and firewood (0.05 percent each).

“Chicken prices might witness further decline in coming days due to the impact of Eidul Azha. However prices of perishable goods could rise further,” the report said.

For those spending up to Rs17,732, SPI was up 15.72 percent YoY and 0.42 percent WoW. It went up from 161.32 points in last week to 161.99 points during the week under review.

Meanwhile, the SPI for the consumption groups from Rs17,732-22,888; Rs22,889-29,517; and Rs29,518-44,175 increased by 0.31 percent, 0.20 percent, and 0.10 percent, respectively.

The quintile spending above Rs 44,175 registered a decline of 0.04 percent in inflation, PBS data showed.

Weekly SPI’s YoY numbers have remained in double digits for the past 20 weeks. The YoY change was 9.92 percent in the week ended February 18, 2021.

The YoY increase was attributed to the rise in prices of mainly electricity for Q1 (61.62 percent), chilli powder (37.29 percent), mustard oil (36.48 percent), gents sandal (33.37 percent), LPG (30.91 percent), vegetable ghee 1kg (27.53 percent), gents sponge chappal (25.13 percent), vegetable ghee 2.5kg (24.64), cooking oil Dalda (24.21 percent), matchbox (23.44 percent) and eggs (23.35 percent).

A major decrease was observed in the prices of tomatoes (35.66 percent), pulse moong (23.29 percent), potatoes (16.38 percent), garlic (4.07 percent), chicken (2.95 percent), salt (0.89 percent) and pulse masoor (0.07 percent).