Irfan Ahmed

The sensitive price indicator (SPI) based on inflation for the week ending on October 6 witnessed an increase of 29.44% for the combined consumption group as compared to the corresponding week of the last year, WealthPK reports.

Inflation in the preceding week was measured at 30.62% on an year-on-year basis as prices of vegetables surged following the damage caused to the agriculture sector by the recent floods.

According to a report of Arif Habib Limited, the State Bank of Pakistan (SBP) is closely monitoring the inflation trajectory. The headline inflation continues to remain in the double-digit since November 2021 mainly on the back of an uptick in food and energy prices. In September 2022, headline inflation clocked in at 23.2% on an year-on-year basis.

However, on a month-on-month basis, inflation receded by 1.15% mainly due to a cut in electricity costs. After peaking in August 2022, headline inflation has started to taper off. Moreover, it is expected to reach its peak in the outgoing quarter of the current fiscal and come down with a high base effect kicking in.

According to the Pakistan Bureau of Statistics (PBS), an increase was observed in the prices of food items. The price of tomatoes increased by 305.60%, onions by 167.80%, pulse gram by 70.02%, pulse Masoor by 64.65%, cooking oil by 61.43%, mustard oil by 61.21%, vegetable ghee by 57.66%, pulse Mash by 55.50%, and pulse Moong by 48.34%.

The rates of diesel increased by 92.08% and petrol by 76.07% while the price of washing soap witnessed an increase of 60.68%.

On the other hand, a major decrease of 45.61% was observed in the electricity tariffs. The price of powdered chilies decreased by 42.08%, sugar by18.09% and gur (raw sugar) by 3.16%.

According to the PBS, the combined index increased to 205.73 points on October 6, 2022, as compared to 205.13 points on September 29, 2022, while the index was recorded at 158.94 points on October 7, 2021.

The SPI monitors the prices of 51 essential items based on a survey of 50 markets in 17 cities of the country. During the week, the prices of 17 items increased, that of 14 items decreased and 20 items remained stable.

Tomatoes were one of the key commodities that increased the weekly inflation, with their prices showing a hike of 27.40% on a week-on-week basis.

Compared to the previous week, the SPI for the combined consumption group in the week under review witnessed a slight increase of 0.29%.

The price of onions increased by 10.22%, bananas by 2.24%, powdered milk by 1.18%, refined sugar by 0.65%, ordinary prepared tea and eggs by 0.57% each, gur by 0.55%, firewood by 0.42% and soap by 0.29%.

On the other hand, the price of petrol decreased by 5.29%, pulse Masoor by 5.16%, potatoes and diesel by 4.87% each, liquified petroleum gas by 4.49%, pulse gram by 3.06%, pulse Mash by 1.67%, pulse Moong by 0.98%, garlic by 0.73%, chicken by 0.52%, mustard oil by 0.45%, wheat flour by 0.36%, cooking oil by 0.22% and vegetable ghee by 0.08%.

The prices of 20 items including beef with bone, vegetable ghee, powdered salt, powered chilies, tea, cooked beef at an average hotel, cooked pulses, cloth, shirting, gents’ sandal, gents’ sponge chappal, ladies’ sandal, energy saver, matchbox, toilet soap and charges of the telephone call, electricity and gas remained stable.

The SPI for the lowest consumption group up to Rs17,732 income registered an increase of 1.22% and went up to 211.73 points from 209.18 points in the last week. On a yearly basis, the SPI increased across all quintiles ranging between 24.58% and 35.21%.

Yearly inflation for the group with monthly income from Rs29,518 to Rs44,175 increased by 30.54% while for the highest income group with monthly income above Rs44,175, it recorded an increase of 35.21%.

In the meantime, weekly inflation for the group with monthly income from Rs22,889 to 29,517 increased by 0.75%.

There is a mild difference between the prices of goods at utility stores and the open market. The prices of items at utility stores are comparatively lesser than in the open market. The Utility Stores Corporation is giving a special subsidy to consumers on pluses, flour, sugar, rice and ghee under the government’s relief package.

The government has reduced the prices of different commodities at utility stores including 20-kilogram of flour by Rs767.13, Tota rice by Rs9.11 per kilogram, pulse Masoor by Rs11.78 per kilogram, grams by Rs5.41 per kilogram, sugar by Rs17.68 per kilogram, ghee Manpasand by Rs144.38 per kilogram and ghee Handi by Rs113.78 per kilogram, according to the information gathered by WealthPK.

Source: Pakistan Bureau of Statistics

Credit : Independent News Pakistan-WealthPk