Pakistan Weekly Inflation Declines to 12.72 Percent

In recent weeks, the economic landscape of Pakistan has been closely monitored, particularly concerning inflation rates. The Sensitive Price Index (SPI), which serves as a key indicator of short-term inflation, has shown a slight easing to 12.72 percent for the week ending September 19. This change is attributed to a decrease in the prices of essential perishable items and petroleum products, providing a glimmer of hope for consumers.

The SPI inflation experienced a modest decline of 0.52 percent from the previous week, marking a reversal after a brief period of increase. This downward trend is primarily driven by falling prices of staple food items such as tomatoes, onions, and chicken, alongside reductions in diesel and petrol prices. It is noteworthy that the weekly inflation had peaked at a staggering 48.35 percent year-on-year in early May 2023, before witnessing a significant deceleration to 24.4 percent in late August 2023. However, it surged past 40 percent again during the week ending November 16, 2023.

Analyzing the data reveals that several items have seen a week-on-week price decline. Diesel prices dropped by 5 percent, followed by onions at 4.45 percent, and petrol at 3.88 percent. Other items that experienced price reductions include tomatoes (1.93 percent), sugar (0.70 percent), and cooking oil (0.45 percent). Conversely, some items have seen price increases, with chicken rising by 1.49 percent, pulse gram by 0.83 percent, and cooked daal by 0.81 percent.

On an annual basis, the inflationary pressures remain evident, with gas charges for the first quarter skyrocketing by 570 percent. Other notable increases include onions at 74.62 percent and pulse gram at 57.34 percent. In contrast, certain items have seen significant price drops, such as wheat flour, which decreased by 38.14 percent, and petrol, which fell by 24.73 percent.

The SPI index, which comprises 51 items collected from 50 markets across 17 cities, is computed weekly to provide a clearer picture of the prices of essential commodities and services. The latest data indicates that out of the items monitored, 17 prices increased, 15 decreased, and 19 remained stable compared to the previous week.

While the recent easing of inflation to 12.72 percent offers a momentary relief for consumers, the overall economic situation remains precarious. The fluctuations in prices of essential goods highlight the ongoing challenges faced by households in Pakistan. As the government and policymakers continue to navigate these economic waters, it is crucial for consumers to stay informed and adapt to the changing market conditions. Understanding these trends can empower individuals to make better financial decisions in their daily lives.