According to data provided by the Pakistan Bureau of Statistics (PBS) on Friday, short-term inflation based on the Sensitive Price Index (SPI) increased to 44.61 percent year over year for the week ending on April 13.
Weekly, the SPI decreased by 0.60 percent. However, as a result of the Ramadan-related demand spiral, food items are becoming more expensive, particularly fruits, potatoes, onions, chicken, beef, eggs, and cooking oil.
Weekly inflation has remained above 40 percent on an annual basis since late February. However, it has significantly decreased over the past three weeks after reaching a record high of 46.7 percent in the week ending March 22.
After the government approved its export at the behest of mill owners and PDM government politicians, the retail price of sugar in marketplaces increased to Rs130 per kg.
At the same time, market prices for 20 kg of flour increased to Rs3,400. Prices for vegetable ghee and cooking oil have recently followed a similar pattern. 26 of the 51 goods in the SPI basket saw price increases, while only 9 saw price decreases. The prices of 16 goods didn’t alter, though.
During the week under review, the items whose prices increased the most over the same week a year ago were:
- Wheat flour (126.09pc)
- Gas charges for Q1 (108.38pc)
- Diesel (102.84pc)
- Eggs (99.37pc)
- Tea Lipton (97.63pc)
- Bananas (90.18pc)
- Potatoes (87.18pc)
- Rice basmati broken (84.46pc)
- Rice Irri-6/9 (81.31pc)
- Petrol (81.17pc)
- Pulse moong (67.43pc)
- Pulse mash (58.54pc)
- Bread plain (55.36pc)
On a week-on-week basis, the biggest change was observed in the prices of:
- Potatoes (8.59pc)
- LPG (4.47pc)
- Eggs (2.65pc)
- Shirting (2.39pc)
- Chicken (2.19pc)
- Georgette (2.10pc)
- Washing soap (1.83pc)
- Bananas (1.64pc)
- Pulse mash (1.45pc)
- Gur (1.25pc)
- Cooked beef (1.15pc)
Products whose prices saw the highest decline over the previous week were:
- Tomatoes (22.43pc)
- Onions (15.85pc)
- Wheat flour (2.75pc)
- Garlic (1.29pc)
- Pulse gram (0.82pc)
- Pulse moong (0.35pc)
- Mustard oil (0.09pc)
- Electricity charges for Q1 (4.95pc)
- Firewood (0.09pc)
Under the International Monetary Fund programme, the government has been implementing harsh measures to raise money to close the fiscal deficit, which could slow economic growth and increase inflation in the near future. These measures include increases in fuel and power tariffs, the withdrawal of subsidies, a market-based exchange rate, and higher taxation.
Retail prices for consumer products will rise further as a result of increases in the SBP policy rate to 21 percent, the sales tax on most items from 17 percent to 18 percent, and the 25 percent tax on more than 800 imported food and non-food items.
