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Pakistan’s Inflation Soars Above 40% as Gas Prices Surge

The inflation rate in Pakistan has remained above 40% for two consecutive weeks due to a significant increase in gas prices, according to official data from the Pakistan Bureau of Statistics (PBS). As of the week ending November 23, the inflation reading stood at 41.13%. Gas prices have soared over 1,100% higher compared to the previous year.

Several other items have also experienced substantial price hikes. Cigarettes saw a surge of 94%, while wheat flour increased by 88.2%. Chilli powder prices rose by 81.7%, broken basmati rice by 76.6%, garlic by 71%, and Irri-6/9 rice by 62.3%. Other items included gents’ sponge chappal (58%), gents’ sandal (53.37%), branded tea (53%), gur (50.8%), and potatoes (47.9%). However, onion prices dropped by 36.2% year-on-year, and tomatoes decreased by 18.1%. Mustard oil and vegetable ghee prices also experienced a decline, at 4% and 2.9%, respectively.

While consumer prices remained stable compared to the previous week, they had spiked by 10% during the previous reporting period when the increase in gas prices took effect. The Sensitive Price Indicator (SPI), which measures short-term inflation using a basket of goods and services, currently stands at 308.90, slightly lower than the previous week’s 309.09.

The SPI index comprises 51 items collected from 50 markets in 17 cities and is computed weekly to evaluate the prices of essential commodities and services at shorter intervals. The PBS data reveals that the prices of 18 items increased, 12 items decreased, and 21 items remained stable compared to the previous week.

Garlic showed the most significant increase week-on-week at 4.6%, followed by onions at 2.4%. Other items with price growth included chicken (1.8%), potatoes (1.7%), pulse masoor (1.01%), LPG (0.8%), firewood (0.6%), wheat flour (0.54%), matchbox (0.52%), pulse moong (0.52%), and plain bread (0.47%). Conversely, tomatoes saw a decline of 5.8%, along with vegetable ghee (-1.4%), cooking oil (-1.3%), banana (-0.9%), vegetable ghee (-0.82%), eggs (-0.33%), sugar (-0.2%), and packed tea (-0.17%).

On an annual basis, the SPI inflation reached a record 48.35% in early May, dropping to as low as 24.4% in late August before climbing above 40% during the week ending November 16.

Overall, Pakistan is witnessing a significant increase in inflation, primarily driven by surging gas prices. This uptick in prices has affected various essential commodities, impacting consumers’ purchasing power across the country.

Source: Source