The greatest weekly increase in inflation ever recorded

According to data provided by the Pakistan Bureau of Statistics (PBS) on Friday, the Sensitive Price Index (SPI) jumped by 3.68 percent from the previous week, primarily due to the highest-ever increase in food prices.

The increase in weekly inflation is the most since the base year shift. 3.38 percent was the second largest rise in the SPI on June 17. In the week under review, the SPI posted its highest-ever year-over-year rise of 37.67 percent.

The government substantially increased gasoline and diesel costs, which contributed to a rise in food inflation.

As rains harm crops, food costs may increase more.

Recent rains across the nation have also caused damage to standing crops, which is likely to keep vegetable prices on the high side due to dwindling supplies. The astronomical increase in electricity rates is another contributor to the price hike.

The administration has previously indicated in the budget that it will gradually reinstate the sales tax on petroleum goods and implement a petroleum development levy. As a result, diesel prices are anticipated to rise during the next quarter. Due to the high costs of shipping, this will boost food costs further.

In the budget documents, the government anticipated a modest inflationary annual target of 11.5% for FY23.

However, the Federal Board of Revenue, which utilizes inflation as one of the methods to collect additional tax revenue from customers, has projected inflation to be 12.8%. In addition, independent economists predicted that yearly inflation would range between 25 and 30 percent.

Soon after assuming office, the new administration disbanded the National Price Monitoring Committee, which was directed by the finance minister and comprised of provincial chief secretaries. Every Monday, the group meets to check the pricing of vital food goods.

The costs of 30 essential food items increased during the week under review, compared to the previous week, according to PBS statistics.

The price of tomatoes increased by 17.53 percent, pulse masoor by 4.18 percent, pulse mash by 2.87 percent, pulse gram by 2.46 percent, pulse moong by 2.02 percent, vegetable ghee by 2.5 kilograms by 1.80 percent, garlic by 1.69 percent, and broken basmati rice by 1.62 percent. The power price increased by 26.11 percent, LPG by 7.02 percent, laundry detergent by 2.34 percent, and energy-saving products by 1.01 percent.

The SPI climbed by 3.27 percent for those earning less than Rs17,732 per month and by 3.54 percent for those earning more than Rs44,175 per month.

Diesel increased 101.53 percent, pulse masoor 99.14 percent, gasoline 94.15 percent, chicken 75.65 percent, cooking oil 5 liters 74.81 percent, vegetable ghee 1 kilogram 72.90 percent, mustard oil 72.45 percent, vegetable ghee 2.5 kilograms 70.51 percent, onions 64.18 percent, washing soap 62.46 percent, pulse gram 55.28 percent, electricity 52.61 percent, gents sponge chappal 52.61 percent, garlic.