Inflation for the week ending September 22 decreased 8.1% compared to the previous week, primarily due to a fall in the costs of food products such as tomatoes, bananas, and cooking oil, according to official figures released on Friday.
The Pakistan Bureau of Statistics reported that the Sensitive Price Index (SPI), which measures short-term inflation, was still 29 percent higher than the same week a year ago. This was primarily due to food and energy costs reaching record highs in the country.
Nonetheless, it was a significant reprieve from the preceding three weeks, during which year-over-year inflation reached levels not seen for decades.
During the week ending April 14, the year-over-year change in weekly inflation hovered at 16.5 percent, only four days after former prime minister Imran Khan was dismissed from office.
Nevertheless, the annual rise in weekly inflation was 40.6 percent (for the week ending September 15), 42.7 percent (for the week ending September 8), 45.5 percent (for the week ending September 1), 44.6 percent (for the week ending August 25), and 42.3 percent (for the week ending August 25). (August 18).
While the SPI decreases more than 8% week-to-week, the annual change stays higher at 29%.
The most recent data indicates that the SPI declined marginally week-over-week, primarily due to a significant decline in the costs of tomatoes and onions, as Pakistan began importing them from Afghanistan and Iran. The week ending July 28 witnessed a substantial surge in inflation, as prices jumped by 3.7% week-over-week.
In addition to the damage to standing crops caused by flooding, a significant increase in electricity costs has also led to price increases. Vegetable prices will undoubtedly increase in the following weeks due to the damage to standing crops.
The administration has set an annual inflation target of 11.5 percent for the fiscal year. However, the Federal Board of Revenue, which uses inflation as one of its tools to collect additional consumer taxes, anticipates inflation of 12.8%. Independent economists predict that inflation will remain between 25 and 30 percent.
In its country’s staff assessment, the International Monetary Fund predicted that Consumer Price Index (CPI) inflation would increase to 20% in the current fiscal year, while core inflation would stay elevated due to rising energy prices and a devaluation of the rupee.
Based on a survey of 50 markets in 17 cities around the nation, the SPI monitors the pricing of 51 essential commodities. During the examined week, the prices of 26 goods increased, ten fell, and 15 were unchanged.
Tomatoes 8.15 percent, bananas 1.9 percent, garlic 1.31 percent, masoor pulse 0.99 percent, a five-liter box of cooking oil 0.78 percent, onions 0.46 percent, a 2.5-kilogram container of vegetable ghee 0.34 percent, and one kilogram of vegetable ghee 0.06 percent.
In the first quarter, electricity prices fell 64.23 percent, and LPG prices fell 3.82 percent among non-food products.
Wheat flour (22.47pc), Lipton tea (6.42pc), chicken (4.52pc), gram pulse (2.54pc), bread (2.36pc), cigarettes (1.82pc), basmati broken rice (1.51pc), potatoes (1.45pc), moong pulse (1.35pc), and Irri 6/9 rice were among the products whose prices climbed during the week under review (1.07pc).
Tomatoes (117.55 percent), diesel (105.12 percent), gasoline (91.87 percent), masoor pulse (75.38 percent), gram pulse (73.55 percent), mustard oil (65.64 percent), five-liter cooking oil (63.63 percent), washing soap (61.50 percent), 2.5kg vegetable ghee (59.42 percent), mash pulse (56.93 percent), 1 kilogram vegetable ghee (56.09 percent), onions (50 percent), and (49.89pc).