ISLAMABAD: Weekly inflation eased slightly to 40.58%, mainly due to prices for kitchen essentials and high energy costs.
Weekly inflation as measured by the Sensitive Price Index (SPI) posted a slight decline of 0.19pc on a weekly basis (WoW) which ended on September 15, data from the Pakistan Bureau of Statistics showed on Friday. statistics (PBS). WoW’s decline has been noted for the past two consecutive weeks.
Prior to that, the largest year-over-year (YoY) increase in the SPI was 45.50pc recorded for the week ending Sept. 1, and 44.58pc, recorded for the week ending Sept. August 25, and 42.31 pc the week ending August 18. Last week, the SPI was recorded at 42.70 bp on an annual basis.
The latest data from the PBS shows that the SPI fell slightly week-on-week, mainly due to a significant drop in food prices – tomatoes and onions due to imports from Afghanistan and Iran. The biggest increase in inflation on WoW was 3.68% for the week ending July 28.
Soaring vegetable prices due to damage to standing crops and a massive hike in electricity tariffs also contributed to the price hike. Damage to standing crops will drive up vegetable prices in the coming weeks.
The government has set a modest annual inflation target of 11.5% for the current fiscal year. However, the Federal Board of Revenue, which uses inflation as one of the measures to collect additional taxes from consumers, forecast inflation of 12.8%. Independent economists estimate that inflation will remain around 25% to 30%.
The International Monetary Fund said in its country’s staff report that average consumer price index (CPI) inflation is expected to reach 20% in the current fiscal year, while inflation under The underlying would also remain high due to the rise in energy prices and the fall in the rupee.
The SPI monitors the prices of 51 essential items based on a survey of 50 markets in 17 cities across the country. During the week under review, the prices of 30 items out of 51 rose, 10 fell and 11 remained stable.
An increase was seen in the prices of Lipton tea (6.30pc), moong pulses (3.46pc), eggs (2.54pc), cooked beef and gram of pulses (2.53pc ) each, wheat flour (1.96 pc), Irri rice 6/9 (1.73 pc), cooked daal (1.71 pc), mashed pulses (1.68 pc) and bread (1 ,45 pc).
On a yearly basis, the items whose prices jumped the most included tomatoes (170.51pc), diesel (105.12pc), gasoline (90.73pc), pulse masoor (76.65pc pc), pulse gram (67.11 pc), mustard oil (65.75 pc), five liter bottle cooking oil (65.45 pc), washing soap (61.05 pc), vegetable ghee 2.5 kg (60.68 pc), LPG (56.61 pc), vegetable ghee 1 kg (56.46 pc), puree of legumes (53.41 pc) and electricity (52.04 pc).
Posted in Dawn, September 17, 2022