Inflation eases slightly as food prices keep consumers on edge

ISLAMABAD: Pakistan’s inflation persisted through early October, though there were signs of moderation, official data showed.

The Sensitive Price Indicator (SPI), which tracks the cost of essential household and food items, rose by 12.74 per cent year-on-year for the week ending October 10, the Pakistan Bureau of Statistics (PBS) reported.

The figure marks a slowdown from the 48.35 per cent peak recorded in May 2023, but inflation remains a concern for households.On a week-on-week basis, the SPI saw a slight decline of 0.08 per cent, offering some relief to consumers. The prices of 15 out of the 51 monitored items rose, eight fell, and 28 remained unchanged compared with the previous week, PBS data showed.

Food prices, a key driver of inflation, continued to fluctuate. Onions led the weekly rise, increasing by 4.14 per cent, while wheat flour prices rose by 1.85 per cent. Other staples like gram pulse, mustard oil, potatoes and liquefied petroleum gas (LPG) also saw increases of less than 1.0 per cent. Meanwhile, the price of tomatoes fell sharply by 19.8 per cent, and bananas, sugar, and various pulses also saw smaller declines.

Inflation eased slightly for the country’s poorest households, those earning less than Rs17,732 per month, by 0.09 per cent over the week. Higher-income groups, earning more than Rs44,175 monthly, saw a 0.08 per cent decrease. Year-on-year inflation, however, rose by 9.02 per cent for the lowest earners and 11.16 per cent for the highest earners. Some commodities have seen substantial price hikes over the past year. Gas prices for the lowest consumer slab jumped by 570 per cent, while gram pulse rose by 71 per cent. Prices for onions, chicken, powdered milk, and beef increased by 25 per cent to 49 per cent, and everyday items like shirting and sandals saw price hikes of 13 per cent to 20 per cent.

Conversely, prices for several essentials have fallen. Wheat flour is 34 per cent cheaper than a year ago, petrol is down 24 per cent, and diesel dropped by 22 per cent. Electricity charges for the lowest slab and prices of cooking oil, sugar, and rice have also fallen by about 10 per cent.