Islamabad – Pakistan has recorded a slight increase in weekly inflation. According to the Pakistan Bureau of Statistics (PBS), the Sensitive Price Index (SPI) increased by 0.15 percent in the week ending August 13. Its rate reached 9.11 percent on an annual basis.
PBS reviewed the prices of 51 essential commodities. Of these, 20 items became moreexpensive;, the prices of 9 decreased while the rates of 22 items remained unchanged. These data were collected from 50 markets and 17 cities of the country.
Onion prices saw the most significant increase during the week. Onions became more expensive by 24.68 percent. Gram gram prices increased by 3.35 percent while chicken prices recorded a 2.45 percent increase.
Other items that became more expensive included LPG, tea, mustard oil, curd, lentils and garlic. LPG prices increased by 0.67 percent while tea prices increased by 0.63 percent.
On the other hand, some important items provided minor relief to consumers. Petrol became cheaper by 2.35 percent during the week. Diesel prices also fell by 0.29 percent.
Tomatoes became cheaper by 1.26 percent, potatoes by 0.73 percent and bananas by 0.36 percent. Prices of mung beans, dal mash, eggs and sugar also decreased.
The data shows that the overall increase in weekly prices was limited. However, significant increases in some daily food items have maintained pressure on the household budget.
The annual trend also paints a different picture of price pressures. On an annual basis, the price of tomatoes increased by 143.77 percent, onion by 125.75 percent and wheat flour by 77.41 percent.
During the same period, the price of LPG increased by 55.41 percent on an annual basis. Diesel by 34.05 percent and petrol by 23.02 percent. This shows that despite the slight decline in the recent week, energy prices are still high compared to a year ago.
Some commodities also saw a decline on an annual basis. The price of potatoes decreased by 30 percent, sugar by 17.93 percent and chicken by 17.45 percent. The prices of pulses, gram and eggs also recorded a year-on-year decline.
The weekly SPI is an important measure of price pressures in the short term. Its data shows the price movements of 51 items related to the daily needs of consumers.
An important aspect in the recent data is the volatility in food prices. The reduction in petrol and diesel prices eased the overall pressure somewhat, but onion and other food prices limited the relief.
From an economic perspective, the annual SPI of 9.11 percent shows that price pressures have not completely disappeared. In the coming weeks, seasonal supply, energy prices and global commodity prices may affect the inflation trend.
The challenge for the government and policymakers is not only to keep overall inflation in check. Preventing sudden increases in the prices of essential commodities is also important for consumers.
The overall weekly increase, according to the latest data, is modest, but the rise in the prices of some basic commodities may maintain the public perception of inflation.
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