Weekly inflation sees slight dip as food prices fall

ISLAMABAD: Weekly inflation, as gauged by the Sensitive Price Indicator (SPI), dipped marginally by 0.1 per cent in the week ending August 22, 2024, primarily due to a reduction in food prices, according to official figures released on Friday.

The SPI, which monitors the prices of 51 essential commodities, indicated a year-on-year increase of 16.69 per cent during the same week, the Pakistan Bureau of Statistics (PBS) reported.

Despite the recent downtick, the inflation index has persistently stayed in double digits since February 2020, highlighting ongoing inflationary pressures, especially on kitchen staples and other household essentials.

The week’s data revealed that the prices of 21 items rose, while nine declined, and 21 remained unchanged. Among the notable decreases, the price of tomatoes fell by 22 per cent to Rs121 per kg, wheat flour by 2.77 percent to Rs1,800 per 20kg bag, bananas by 2.1 per cent to Rs142 per dozen, onions by 1.7 per cent to Rs137 per kg, sugar by 1.43 per cent to Rs144 per kg, chicken (farm, live) by 1.25 per cent to Rs446 per kg, masoor pulse by 1.0 per cent to Rs318 per kg, and bread by 0.61 per cent to Rs110 per loaf.

However, not all items saw relief. The price of farm eggs rose by 6.1 per cent to Rs303 per dozen, gram pulse by 6.05 per cent to Rs367 per kg, potatoes by 2.4 per cent to Rs102 per kg, cooked daal by 0.89 per cent to Rs156 per plate, cooked beef by 0.74 per cent to Rs288 per plate, mustard oil by 0.63 per cent to Rs504 per kg, beef by 0.47 per cent to Rs988 per kg, and shirting fabric by 0.43 per cent to Rs472 per meter. Fresh milk prices also increased by 0.39 percent, while LPG saw a slight rise of 0.16 percent.

On a year-on-year basis, some commodities have seen dramatic price surges. Gas prices for the lowest consumer slab skyrocketed by 570 per cent, onion prices climbed by 80 per cent, and gram pulse by 51 per cent. Other notable year-on-year increases included tomatoes, up by 28 per cent, milk powder by 26 per cent, and gents’ sandals by 25 per cent. The cost of beef, moong pulse, and shirting fabric each rose by 24 per cent. Additionally, garlic prices increased by 23 per cent, salt powder by 21 per cent, and georgette fabric by 15 per cent compared to the same week last year.

Conversely, some items have become cheaper compared to a year ago. Wheat flour prices have dropped by 36 per cent, chili powder by 18 per cent, electricity charges for Q1 by 17 per cent, and cooking oil by 10.5 per cent. However, petrol and sugar prices still rose by 10 per cent each, diesel by 9.2 per cent, basmati rice (broken) by 8.9 per cent, vegetable ghee by 7 per cent, and mustard oil was cheaper by 4.0 per cent.