Pakistan witnesses a surge in gas prices, leading to a temporary inflation spike of 42 percent.
Published on: November 18, 2023.
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An increase in gas prices has led to a significant rise in short-term inflation in Pakistan, reaching an alarming 41.9% for the week ending November 16, according to official data reported by Dawn, a Pakistani English-language newspaper. This is the first time in over four months that the annual inflation rate has exceeded 40%.
The Pakistan Bureau of Statistics (PBS) attributes the high inflation reading to the drastic 1,100% increase in gas charges compared to the previous year. Additionally, several other items experienced significant price increases. Cigarettes saw a surge of 94.5%, wheat flour increased by 86.4%, chilli powder by 81.7%, broken basmati rice by 76.7%, garlic by 63.6%, IRRI 6/9 rice by 61.9%, tea by 54.6%, gur by 51%, and sugar by 50%.
The short-term inflation, measured by the Sensitive Price Indicator (SPI) which assesses a basket of goods and services, also saw a substantial surge. In the week of November 11-16, the SPI rose to 10% from just 0.73% in the previous week, resulting in a current index of 309. The SPI is calculated weekly to monitor the prices of essential commodities and services, including 51 items collected from 50 markets across 17 cities.
This significant increase in inflation is a cause for concern in Pakistan, as it impacts the cost of living for the general population. It is essential for policymakers and authorities to closely monitor and address these inflationary pressures to ensure stability in the economy.
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