According to the Pakistan Bureau of Statistics (PBS) report, the Sensitive Price Index (SPI) has recorded an increase of 4.17 percent on an annual basis. Although consumers have had the temporary comfort of a 1.34 -percent drop in the recent week, experts say the decline is temporary while inflationary pressures remain.
Overall Inflation Overview
The SPI compiled on the basis of prices of 51 essential items from 17 major cities stood at 330.84 points during the recent week compared to 335.35 points in the previous week. However, when compared with the same week last year, the increase highlights significant financial strain on consumers.
Items Showing Major Decline (Year-on-Year)
Compared to the same week last year, there was a significant decrease in the prices of some basic commodities:
- Onions: -38.23%
- Garlic: -27.50%
- Electricity bills (Q1): -26.26%
- Chickpeas (dal chana): -21.45%
- Black gram (dal mash): -20.95%
- Tea: -17.93%
- Potatoes: -15.20%
- Chicken: -11.06%
- Red lentils (dal masoor): -5.29%
The reduction is providing temporary relief but economic analysts say the impact is limited and unrelenting.
Items Showing Major Increase (Year-on-Year)
At the same time, several basic necessities continued to be under severe inflationary pressure:
- Women’s sandals/slippers: 55.62%
- Tomatoes: 49.02%
- Sugar: 30.17%
- Gas bills (Q1): 29.85%
- Green gram (dal moong): 15.79%
- Wheat flour: 15.70%
- Firewood: 12.40%
- Jaggery: 12.36%
- Beef: 12.31%
- Vegetable ghee (2.5kg): 11.26%
- Vegetable ghee (1kg): 11.09%
- Diesel: 9.51%
This increase is seriously affecting the budget of ordinary consumers especially for low-income families.
Weekly Decline in Prices
- Tomatoes: -23.11%
- Chicken: -12.74%
- Electricity bills: -6.21%
- Bananas: -5.07%
- Wheat flour: -2.60%
- Onions: -1.17%
- Red lentils: -0.64%
- Chickpeas: -0.47%
- Garlic: -0.46%
Weekly Increase in Prices
- Diesel: 1.06%
- Eggs: 0.91%
- Broken basmati rice: 0.84%
- Georgette fabric: 0.83%
- Irri-6/9 rice: 0.78%
- Firewood: 0.59%
- Beef: 0.42%
- Mutton: 0.31%
- Cooked beef: 0.31%
- Vegetable ghee (1kg): 0.25%
Impact on Income Groups
The inflation rate varied across different income groups:
- Low-income households (up to Rs. 17,732/month): SPI dropped 1.43%, from 327.39 to 322.71 points.
- Other Groups:
- Rs. 17,733 – 22,888: -1.59%
- Rs. 22,889 – 29,517: -1.34%
- Rs. 29,518 – 44,175: -1.31%
- Above Rs. 44,175: -1.23%
Expert Analysis
The weekly decline offers temporary relief but the annual increase signals a worrying trend, according to economists. Experts highlight that:
- Supply chain disruptions remain unresolved.
- Repeated hikes in energy tariffs are directly burdening consumers.
- Climate change and heavy rainfall have disrupted agricultural output.
- Recent floods have further weakened the purchasing power of millions of families.
They warn that without timely government intervention that inflationary pressures could worsen exacerbating poverty and unemployment rates.
Summary:
- Consumers enjoyed slight weekly relief.
- Annual inflation continues to rise dangerously.
- Floods and the energy crisis have worsened the economic outlook.
