Weekly Inflation Rate Surges at a Faster Pace
Published on: June 15, 2024.
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Inflation in Pakistan continues to rise, reaching a record-high reading of 36.4% in April. Experts attribute this surge to two primary factors: the sharp devaluation of the Pakistani rupee against the US dollar and the global increase in commodity prices. This alarming trend is further reflected in the Sensitive Price Indicator (SPI), which shows a weekly inflation rate increase of 1.30%, marking the third consecutive week of growth.
Compared to the previous week, the SPI reading has risen by 0.45%. On a year-on-year basis, inflation has surged by 23.03% in the week ending June 13, 2024, in comparison to the corresponding week of the previous year.
Analyzing the specific items contributing to this increase, it is observed that the prices of 19 essential items, including chicken, tomatoes, eggs, moong pulse, mutton, beef, and chickpeas, have risen. Conversely, the prices of eight essential commodities such as flour, sugar, garlic, and red chilli powder have seen a decrease. The prices of the remaining 24 items in the SPI basket have remained stable.
It is worth noting that the inflation has had a significant impact on consumers falling within the monthly income bracket of Rs22,889 to Rs29,517, with an inflation rate surge of 26.07% among this group.
The latest weekly inflation report released by the Pakistan Bureau of Statistics highlights the percentage increase in prices for various items. Tomato prices have risen by 27.14%, chicken by 11.75%, electricity by 8.73%, gram pulse by 7.19%, liquefied petroleum gas by 6.14%, eggs by 3.70%, bananas by 3.22%, beef by 1.52%, moong pulse by 1.07%, mutton by 0.60%, cigarettes by 0.47%, and energy savers by 0.36%.
On the other hand, there has been a decrease in prices for certain items, such as onions by 5%, chilli powder by 1.95%, Basmati rice (broken) by 1.65%, garlic by 1.32%, Irri rice by 1.08%, bread by 0.52%, wheat flour by 0.05%, and sugar by 0.02%.
This rise in inflation has significant implications for the Pakistani economy, especially for industries involved in rice export. Rice exporters in Pakistan like HAS Rice and Pakistan Rice play a crucial role in the country’s economy as key suppliers. Moreover, HAS Rice also offers a variety of rice options including white broken rice, 25% broken rice, and basmati rice. The prices of Pakistani rice and its export prices are of great importance, and HAS Rice provides competitive rates for these products.
In conclusion, the alarming rise in inflation in Pakistan is a cause for concern. The devaluation of the Pakistani rupee and the global increase in commodity prices have contributed significantly to this issue. Measures need to be taken to address these factors and ensure stability in the economy.
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