Global Rice News

Inflation in Pakistan Hits Over 40% Due to Gas Price Increase

An increase in gas prices has driven the annual short-term inflation in Pakistan to above 40 per cent for the first time in over four months, according to official data released by the Pakistan Bureau of Statistics (PBS). The inflation reading stood at 41.9 per cent for the week ending November 16, mainly due to a more than 1,100 per cent increase in gas charges compared to a year ago.

Other items that saw significant price increases included cigarettes (94.5 per cent), wheat flour (86.4 per cent), chilli powder (81.7 per cent), broken basmati rice (76.7 per cent), garlic (63.6 per cent), IRRI 6/9 rice (61.9 per cent), tea (54.6 per cent), gur (51 per cent), and sugar (50 per cent).

On the other hand, the prices of onions dropped by 36.2 per cent year-on-year, followed by tomatoes (-14 per cent), mustard oil (-3.95 per cent), vegetable ghee (-2 per cent), and pulse gram (-0.5 per cent).

Short-Term Inflation Soars

The short-term inflation, measured by the Sensitive Price Indicator (SPI), which tracks a basket of goods and services, saw a significant increase compared to the previous week. It rose to 10 per cent in the week of November 11-16 from just 0.73 per cent the week before. The SPI index currently stands at 309 and is computed weekly to assess the prices of essential commodities and services at shorter intervals. It comprises 51 items collected from 50 markets in 17 cities.

According to PBS data, 25 items saw price increases, 13 items saw decreases, and 13 items remained almost unchanged compared to the previous week. The items with the highest price increases week-on-week included gas (480 per cent), tea packet (8.9 per cent), pulse masoor (5.3 per cent), chicken (4 per cent), garlic (3 per cent), salt powdered (2.9 per cent), wheat flour (2.6 per cent), tea prepared (2.07 per cent), LPG (2.03 per cent), and potatoes (2 per cent).

Conversely, the items with the highest price decreases included electricity charges (-16 per cent), tomatoes (-11.2 per cent), sugar (-4.2 per cent), diesel (-2.2 per cent), onions (-1.49 per cent), vegetable ghee (-1.39 per cent), petrol (-0.73 per cent), and cooking oil (-0.65 per cent).

Gold Prices Surge in Pakistan

In addition to the inflation increase, it has been reported that gold prices in Pakistan have also surged. The All Pakistan Gems and Jewellers Association (APGJA) stated that the price of 24-karat gold per tola increased by PKR 2,000 to settle at PKR 214,800 per tola. The price of 10 grams of 24-karat gold settled at PKR 184,156 after a surge of PKR 1,714. The 10-gram price of 22-karat gold reached PKR 168,810.

In the international market, the price of gold increased by USD 23 to settle at USD 1,988 per ounce.

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