Pakistan Struggles with High and Persistent 41% Price Inflation
Published on: December 2, 2023.
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Pakistan Faces Severe Economic Challenge as Inflation Rate Surges
Islamabad, November 24, 2023 – Pakistan is currently grappling with a significant economic hurdle as the inflation rate, based on essential commodity prices, has skyrocketed to over 41 percent.
The most recent data released by the Pakistan Bureau of Statistics (PBS) reveals that the Sensitive Price Indicator (SPI) on a Year on Year (YoY) basis for the week ending November 23, 2023, stands at an alarming 41.13 percent.
The PBS report highlights the unsettling situation and identifies specific items that have seen sharp price increases. Notably, Gas Charges for Q1 saw an astonishing spike of 1108.59 percent, followed by Cigarettes (94.20 percent), Wheat Flour (88.18 percent), Chilies Powder (81.74 percent), Rice Basmati Broken (76.57 percent), Garlic (71.03 percent), Rice Irri-6/9 (62.28 percent), Gents Sponge Chappal (58.05 percent), Gents Sandal (53.37 percent), Tea Lipton (53.00 percent), Gur (50.80 percent), and Potatoes (47.90 percent).
Conversely, there was some relief in the prices of certain commodities, with Onions seeing a decrease of 36.18 percent, Tomatoes (18.10 percent), Mustard Oil (4.06 percent), and Vegetable Ghee 1 KG (2.85 percent).
The SPI for the week ending on November 23, 2023, experienced a slight decrease of 0.06 percent, according to the PBS. This decline can be attributed to reductions in the prices of Tomatoes (5.78 percent), Vegetable Ghee 2.5 KG (1.36 percent), Cooking Oil 5 Litre (1.31 percent), Banana (0.91 percent), Vegetable Ghee 1 KG (0.82 percent), Eggs (0.33 percent), Sugar (0.20 percent), and Tea Lipton (0.17 percent). On the other hand, certain items saw notable increases, including Garlic (4.61 percent), Onion (2.42 percent), Chicken (1.81 percent), Potatoes (1.69 percent), Pulse Masoor (1.01 percent), LPG (0.76 percent), Firewood (0.59 percent), Wheat Flour (0.54 percent), Matchbox (0.52 percent), Pulse Moong (0.52 percent), and Bread Plain (0.47 percent).
During a week marked by fluctuations, out of 51 essential items, prices of 18 (35.29 percent) witnessed an increase, 12 (23.53 percent) saw a decrease, while 21 (41.18 percent) remained stable.
This concerning inflationary trend is a matter of significant concern for the Pakistani economy, affecting the cost of living for citizens and posing numerous challenges for businesses. The government is now under immense pressure to take decisive measures that can address the root causes of inflation and stabilize the prices of essential goods. As the situation develops, policymakers will closely monitor economic indicators to devise effective strategies for alleviating the impact of soaring inflation on the nation’s economy.
