Global Rice News

Rise in Gas Prices Leads to Over 40% Inflation in Pakistan

Inflation in Pakistan has exceeded 40% for the first time in over four months, primarily due to an increase in gas prices, according to data from the Pakistan Bureau of Statistics (PBS). The inflation rate for the week ending November 16 stood at 41.9%. Gas charges saw a significant increase of over 1,100% compared to the previous year.

Other items that experienced notable price increases include cigarettes (94.5%), wheat flour (86.4%), chilli powder (81.7%), broken basmati rice (76.7%), garlic (63.6%), IRRI 6/9 rice (61.9%), tea (54.6%), gur (51%), and sugar (50%), as reported by Dawn.

On the contrary, the prices of onions decreased by 36.2% year-on-year, followed by tomatoes (-14%), mustard oil (-3.95%), vegetable ghee (-2%), and pulse gram (-0.5%), as per Dawn.

Short-Term Inflation Soars

The Sensitive Price Indicator (SPI), which measures short-term inflation through a basket of goods and services, also saw a substantial increase compared to the previous week. In the week of November 11 to 16, the SPI skyrocketed to 10% from just 0.73% a week earlier.

The SPI, currently at 309, is calculated weekly to assess the prices of essential commodities and services more frequently. It comprises 51 items collected from 50 markets in 17 cities.

According to PBS data, the prices of 25 items increased, 13 items decreased, and 13 items remained nearly unchanged compared to the previous week.

As reported by Dawn, the items that experienced the highest increase in prices week-on-week included gas (480%), tea packet (8.9%), pulse masoor (5.3%), chicken (4%), garlic (3%), salt powdered (2.9%), wheat flour (2.6%), tea prepared (2.07%), LPG (2.03%), and potatoes (2%).

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

The SPI inflation reached a record high of 48.35% in early May but subsequently decreased to as low as 24.4% in late August before surpassing 40% last week.

Rise in Gas Prices and Surge in Gold Prices

The increase in gas prices is a result of the Pakistan caretaker government’s decision to raise natural gas prices by 194% starting from November 1. Consumers will also experience a significant surge in fixed monthly gas charges, with an increase of up to 3,900% for protected and non-protected consumers.

Additionally, gold prices in Pakistan have risen by PKR 2,000 per tola, according to the All Pakistan Gems and Jewellers Association (APGJA). The price of 24-karat gold per tola settled at PKR 214,800, while 10 grams of 24-karat gold reached PKR 184,156. The price of 22-karat gold per 10 grams has reached PKR 168,810.

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

Source: Zeebiz.com