Pakistan’s Short-Term Inflation Skyrockets to 29.88%
Published on: November 5, 2023.
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Short-term inflation in Pakistan has shown a significant increase of 29.88% year on year, as reported by Dawn. The data released on November 2 reveals that the rising prices of kitchen products are the main cause for this surge.
The Sensitive Price Index, a measure of weekly inflation, also rose by 0.71% on a week-on-week basis. This comes after a steady increase over the past five weeks. The interim government has chosen to maintain the prices of petrol and high-speed diesel for the current fortnight, disappointing consumers who were expecting a reduction.
Out of the 51 items in the SPI basket, the prices of 12 increased, while 14 saw a decrease. The prices of 25 items remained unchanged compared to the previous week. The highest increases in prices from the same week last year were seen in gas charges for Q1 (108.38%), cigarettes (94.46%), chillies powder (84.11%), rice basmati broken (78.08%), wheat flour (76.51%), sugar (62.60%), rice Irri-6/9 (62.27%), gents sponge chappal (58.05%), tea Lipton (55.79%), garlic (54.51%), and gur (53.53%).
On a week-on-week basis, the prices of tomatoes (25.58%), onions (25.25%), chicken (10.79%), potatoes (1.61%), tea Lipton (1.58%), eggs (1.30%), garlic (0.50%), rice basmati broken (0.19%), georgette (0.28%), and firewood (0.05%) saw the biggest increases.
The World Bank has issued a warning that Pakistan is at a tipping point on poverty, with 40% of its population below the poverty line, as reported by The Financial Post. The Bank’s policy note, intended as a guide for the upcoming government, highlights the fact that over 12.5 million Pakistanis fell below the poverty line last year, with poverty levels rising from 34.2% to 39.4%.
It is imperative for Pakistan to address these issues and take immediate action to boost the economy and improve the living conditions of its citizens.
