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Pakistan’s Short-term Inflation Persists Above 41% Mark, Reflecting 42.6% Annual Increase

Pakistan’s short-term inflation, as measured by the Sensitive Price Index (SPI), continued to rise, reaching a 42.6% annual increase, according to the Pakistan Bureau of Statistics (PBS). This marks the sixth consecutive week that inflation has remained above the 41% mark.

While there was a slight 0.5% decrease in the SPI on a week-on-week basis for the week ending December 21, the cost of living significantly increased. This was mainly driven by a staggering 1,109% surge in gas rates. The increase in prices also impacted essential kitchen staples such as wheat, rice, chillies, tomatoes, and sugar.

The SPI, which monitors 51 essential commodities across 50 markets in 17 cities, showed significant year-on-year escalations. Cigarette prices increased by 93.22%, while chilli powder prices escalated by 82%. Wheat flour prices surged by 78.8%, and there were notable increases in garlic, broken rice basmati, and other staples.

However, amidst this inflationary trend, there were some commodities that experienced a decline in prices. On an annualized basis, onion prices decreased by 23.92%. Mustard oil and specific sizes of vegetable ghee also saw reductions.

In the latest week under review, ending December 21, there was some relief as prices decreased for items such as potatoes, petrol, diesel, tomatoes, sugar, wheat flour, chicken, certain types of rice, and cooking oil. On the other hand, prices increased for eggs, firewood, onions, various pulses, and clothing materials.

Out of the 51 items monitored, 18 reported price hikes, nine saw decreases, and the rest remained stable. The SPI inflation trajectory peaked at 48.35% in early May, dropped to 24.4% in late August, and has since consistently remained above the 40% mark from mid-November.

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