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Weekly Inflation in Pakistan Falls for Fourth Straight Week
Pakistan’s inflation has shown a much-needed downward trend for the fourth consecutive week, offering slight relief to consumers. According to data released by the Pakistan Bureau of Statistics (PBS), the Sensitive Price Index (SPI)-based inflation for the week ending September 5, 2024, dropped by 0.15%. This decline marks a continued easing of inflationary pressures in the country.
What the Latest SPI Data Reveals
The Sensitive Price Index tracks the price fluctuations of 51 essential items, providing a snapshot of how inflation is impacting households across Pakistan. Out of the 51 items monitored, the prices of 19 items (37.25%) increased, while 13 items (25.50%) saw a decrease. Additionally, the prices of 19 items (37.25%) remained unchanged during the week.
Items That Saw a Price Increase
Despite the overall decline in inflation, certain essential goods saw a rise in their prices. Key items that contributed to the increase include:
- Onions (3.83%)
- Pulse Gram (1.65%)
- Garlic (1.38%)
- LPG (Liquefied Petroleum Gas) (0.9%)
- Cooked Daal (0.70%)
- Cooked Beef (0.70%)
- Eggs (0.54%)
- Potatoes (0.50%)
- Rice Basmati Broken (0.34%)
- Bananas (0.22%)
- Pulse Moong (0.17%)
- Milk Fresh (0.17%)
These price increases are a reflection of ongoing supply chain challenges and other economic factors influencing the market.
Items That Saw a Price Decrease
On the flip side, a number of items experienced a significant reduction in their prices during the same period. Major items that recorded a price drop include:
- Tomatoes (14.54%)
- Chicken (1.55%)
- Wheat Flour Bag (20 kg) (1.31%)
- Chilies Powder (National, 200 gm packet) (1.30%)
- Hi-Speed Diesel (1.23%)
- Petrol Super (0.68%)
- Pulse Masoor (0.59%)
- Sugar (0.54%)
- Pulse Mash (0.49%)
- Cooking Oil (Dalda or similar brand, 5-litre tin) (0.41%)
- Rice IRRI-6/9 (0.29%)
- Mustard Oil (0.08%)
- Bread Plain (0.03%)
The sharp decrease in tomato prices, along with the reduction in fuel prices, contributed significantly to the overall decline in the inflation rate.
Year-on-Year Inflation Analysis
While the week-on-week SPI data shows a decline, the year-on-year comparison paints a different picture. On an annual basis, weekly inflation increased by 14.07%. However, this is the lowest year-on-year inflation rate recorded in the past three years, signaling potential stabilization in the economy.
What Does This Mean for Consumers?
The weekly decline in inflation is a promising development for households already grappling with rising costs of living. However, the uneven price trends—where some essential goods have become more expensive—mean that consumers are not yet fully out of the woods. Nonetheless, the easing of inflationary pressure is a positive sign, particularly for key items like fuel, wheat flour, and certain vegetables, which are staples for many families.
