nflation, measured by the Sensitive Price Indicator (SPI), registered a slight decline of 0.09% for the week ending March 6, 2025, driven primarily by lower prices of essential food items and fuel, according to data from the Pakistan Bureau of Statistics (PBS).
The SPI, which monitors 51 key consumer goods across 17 cities, showed that 20 items saw price reductions, 13 recorded increases, and 18 remained unchanged.
Key Price Drops:
A notable decrease in food prices contributed to the decline in weekly inflation. The biggest reductions were observed in:
- Onions (-5.59%)
- Lipton tea (-4.47%)
- Garlic (-3.89%)
- Tomatoes (-3.6%)
- Pulse gram (-3.49%)
- Pulse mash (-2.82%)
- Potatoes (-2.6%)
- Pulse masoor (-1.5%)
Fuel prices also saw a dip, with diesel falling by 2% and petrol decreasing by 0.24%.
Commodities with Price Hikes:
Despite the overall decline, some essential goods became costlier, including:
- Bananas (+9.79%) – the largest increase
- Sugar (+3.15%)
- LPG (+2.64%)
- Eggs (+2.52%)
- Mutton (+0.33%)
- Wheat flour (+0.22%)
Year-on-Year (YoY) Inflation Trends:
Compared to the same period last year, the SPI fell by 0.87%, largely due to significant price drops in several food staples:
- Onions (-64.92%)
- Tomatoes (-57.05%)
- Wheat flour (-36.81%)
- Chili powder (-20%)
- Electricity charges (-18.92%)
- Tea (-14.92%)
- Diesel (-9.91%)
- Petrol (-8.55%)
However, some items experienced notable price increases compared to last year:
- Ladies’ sandals (+75.09%)
- Bananas (+30.96%)
- Pulse moong (+26.9%)
- Powdered milk (+25.86%)
- Beef (+22.51%)
- Vegetable ghee (16.12% for 1 kg, 14.32% for 2.5 kg pack)
- Eggs (+13.52%)
Impact on Different Income Groups:
The impact of inflation varied across income levels:
- The lowest income group saw the sharpest decline of 0.20%, while
- The highest income group experienced only a 0.03% decrease.
On a YoY basis, the lowest expenditure group saw a significant reduction of 2.47%, while the highest income group recorded a slight increase of 0.24%.
The overall decline in inflation provides some relief to consumers, though rising prices of essential commodities remain a concern for many households.
