Weekly inflation rises 0.3pc in early August

ISLAMABAD: Weekly inflation, measured by the Sensitive Price Indicator (SPI), rose by 0.3 per cent in the first week of August 2024, marking a slight increase from the previous week, according to official data released on Friday. The uptick is largely attributed to rising food prices.

The SPI, which tracks the prices of 51 essential items, showed a year-on-year increase of 17.96 per cent for the week ending August 8, 2024, as reported by the Pakistan Bureau of Statistics (PBS). The index has remained in double digits since February 2020, reflecting persistent inflationary pressures, particularly in essential kitchen items and other daily household necessities.

Data for the week showed that the average prices of 23 items increased, seven items declined, and 21 items remained stable. Notably, onion prices surged by 32.2 per cent to Rs146 per kilogram; eggs rose by 4.3 per cent to Rs272 per dozen; and garlic prices increased by 3.2per cent to Rs512 per kilograms. The cost of an 11.67-kilogram cylinder of liquefied petroleum gas (LPG) also went up by 1.73 per cent to Rs3,097.

The price of georgette fabric increased by 1.32 per cent to Rs285 per meter, while mash pulse and gram pulse each rose by 1.0 per cent to Rs582 per kilogram and Rs345 per kilogram, respectively. Other notable increases included moong pulse by 0.83 per cent to Rs346 per kilogram, potatoes by 0.7 per cent to Rs100 per kilogram, and firewood by 0.56 per cent to Rs1,205 per 40 kilograms. Chicken prices edged up by 0.52 per cent, and cigarette prices saw a marginal increase of 0.09 per cent from the previous week.

However, some items became cheaper during the week. Tomato prices dropped by 19.1 per cent to Rs115 per kilogram, bananas decreased by 1.55 per cent to Rs147 per dozen, and wheat flour fell by 1.4 per cent to Rs1,886 per 20-kilogram bag. Prices of chili powder, masoor pulse, and sugar also saw slight reductions compared to the previous week.

On a year-on-year basis, gas prices surged by 570 per cent for the lowest consumer slab, while onion prices increased by 142 per cent, and gram pulse by 42 per cent. Other significant year-on-year increases included moong pulse by 30 per cent, garlic by 29 per cent, and powdered milk by 28 per cent. Prices for gents’ sandals, shirting fabric, and beef rose by 25 per cent, 25 per cent, and 23 per cent, respectively.

Conversely, some items became cheaper compared to the same week last year. Wheat flour prices dropped by 33 per cent, tomatoes by 18 per cent, and electricity charges for Q1 by 17 per cent. Cooking oil prices decreased by 13 per cent, chili powder by 12 per cent, and vegetable ghee by 10 per cent. Mustard oil, rice basmati broken, petrol, and diesel also saw price reductions over the year.

Pakistan’s headline monthly consumer price index (CPI) inflation fell to 11.09 per cent in July 2024, the lowest level since October 2021. Economists believe that inflation could fall to single digits in the coming months.