Weekly inflation dropped by 1% in Pakistan

The weekly inflation, as measured by the Sensitive Price Indicator (SPI), witnessed a notable decline of 1 percent for the combined consumption groups during the week ending on May 02, as per data released by the Pakistan Bureau of Statistics (PBS).

This signifies a significant shift as inflationary pressures ease for the first time in recent weeks. The SPI for the current week stands at 316.95 points, marking a decrease from the previous week’s 320.14 points.

However, compared to the corresponding week of the previous year, the SPI has surged by 24.37 percent, reflecting the ongoing inflationary trend across various sectors.

The SPI, calculated with a base year of 2015-16, encompasses 17 urban centers and 51 essential items across all expenditure groups, serving as a vital indicator of inflationary trends in Pakistan.

For the lowest consumption group, earning up to Rs17,732, the SPI decreased by 1.09 percent, settling at 306.26 points, down from last week’s 309.64 points.

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Similarly, the SPI for consumption groups in the ranges Rs17,732-22,888, Rs22,889-29,517, Rs29,518-44,175, and above Rs44,175 witnessed decreases of 1.12 percent, 1.02 percent, 1.04 percent, and 0.95 percent, respectively.

This widespread decline indicates a general easing of inflationary pressures across different income groups.

Price fluctuations across essential items

Out of the 51 items evaluated by the SPI, the prices of 18 items decreased, 15 increased, and 18 remained stable during the week.

Items with decreased prices

Key items that experienced a notable decrease in their average prices on a week-on-week basis include:

Tomatoes: 22.05 percent decrease
Chicken: 8.03 percent decrease
Onions: 7.71 percent decrease
Wheat flour: 6.88 percent decrease
Bananas: 5.25 percent decrease
Diesel: 2.89 percent decrease
Items with increased prices

In contrast, some items saw a rise in their prices. These include:

Potatoes: 6.06 percent increase
Salt powder: 0.91 percent increase
Garlic: 0.85 percent increase
Powdered milk: 0.70 percent increase
Year-on-year trends

While the week-on-week numbers showed a decline, the year-on-year comparison presents a more complex picture. Certain commodities experienced significant increases over the past year, notably:

Gas charges for Q1: 570 percent increase
Onions: 145.15 percent increase
Tomatoes: 79.43 percent increase
Garlic: 72.46 percent increase
Chilies powder: 71.96 percent increase
However, some items witnessed a decrease in average prices over the year, including:

Bananas: 37.76 percent decrease
Wheat flour: 23.15 percent decrease
Cooking oil (5 liters): 20.45 percent decrease
These figures suggest a dynamic landscape of price fluctuations, with some areas showing improvement while others continue to face inflationary pressures.

The decrease in SPI for the current week offers a brief respite from the upward inflation trend, but with significant year-on-year increases in many commodities, vigilance remains crucial.