HomeBusinessInflation in Pakistan Spikes by Nearly 10% this Week

Inflation in Pakistan Spikes by Nearly 10% this Week

The surge in inflation, particularly driven by the sharp rise in gas prices, raises concerns about the economic impact on various income groups.

The Weekly Sensitive Price Indicator (SPI) for the Combined Group in Pakistan witnessed a sharp increase of 9.95% in the week concluding on November 16, 2023, compared to the previous week. This surge is largely attributed to the notable escalation in gas prices during the review period.

Data released by the Pakistan Bureau of Statistics (PBS) reveals that the SPI has re-entered territory above the 40% mark, standing at 41.9% Year-on-Year (YoY) in contrast to the corresponding period of the previous year. The Combined Index, which was at 309.09 on November 8, 2023, increased significantly from 281.12 the previous week, and a year ago, on November 17, 2022, the index was recorded at 217.82.

Among the 51 items considered in the SPI, the average price of 25 items increased, 13 items witnessed a decrease, and 13 items remained stable. Significant increases were observed in the prices of gas (480%), tea lipton (8.88%), pulse masoor (5.28%), chicken (3.99%), and garlic (3.09%). Conversely, notable decreases were noted in the prices of electricity charges (16.06%), tomatoes (11.16%), sugar (4.24%), diesel (2.15%), and onions (1.49%).

Analyzing the weekly SPI percentage change across income groups, it was observed that SPI increased across all quantiles, ranging between 6.63% and 12.8%. The lowest-income group experienced a weekly increase of 6.63%, while the highest-income group recorded an increase of 8.07%. On a yearly basis, the analysis of SPI change across different income segments indicated an increase ranging between 35.72% and 45.84%.

The yearly SPI for the lowest income group rose by 35.72%, while the highest income group recorded an increase of 39.67%. The average price of Sona urea was Rs3,930 per 50 kg bag, marking a 1.1% increase from the previous week and a substantial 59.06% increase compared to the prices of the same period last year. Simultaneously, the average cement price stood at Rs1,195 per 50 kg bag, reflecting a 0.27% increase from the previous week and a notable 14.87% increase from last year’s prices.

The views expressed in this article are the author’s own and do not necessarily reflect Coverpage’s editorial stance

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