ISLAMABAD: Yearly inflation reached a new high of 38.42% for the week ending February 16, as the country’s trend of rising commodity prices continued.
According to the Pakistan Bureau of Statistics (PBS) data released on Friday, the Sensitive Price Index (SPI), which is used to measure short-term inflation, increased to 38.42% year on year (YoY) in the previous week.
The SPI increased by 2.89% on a weekly basis, compared to 0.17% in the previous week.
The previous week’s SPI inflation rate was 34.83% on a yearly basis. The price increase is due to the government’s announcement of higher fuel prices. As a result, the prices of essential items have risen.
Based on a survey of 50 markets in 17 cities across the country, the SPI is used to estimate the prices of 51 essential items.
During the previous week, the prices of 34 items rose, five fell, and 12 remained unchanged.
Rising prices had the greatest impact on the group with a monthly income ranging from Rs29,518 to Rs44,175 and an inflation impact of 39.65%.
Petrol prices increased by 8.82% in a week, five liters of cooking oil by 8.65%, one kilogram of ghee by 8.02%, chicken meat by 7.49%, and diesel by 6.49%.
The price of tomatoes decreased by 14.27% week on week (WoW). This was followed by a 13.48% weekly decrease in the price of onions.
Similarly, on a WoW basis, the price of eggs fell by 4.24%, garlic by 2.1%, and flour by 0.1%.
The highest YoY basis increase was seen in the price of onions, which increased by 433.44%.
This was followed by chicken meat, the price of which increased by 101.86% year on year.
On a year-over-year basis, diesel increased by 81.36%, eggs by 81.22%, and rice irri-6/9 by 74.12%.
Tomatoes were reduced in price by 65.3% year on year, and chili powder was reduced by 7.42%.
According to the statistics for the previous week, the annual inflation rate for the group earning up to Rs17,732 per month was 35.01%.
In the income range of Rs17,733 to Rs22,888 per month, the inflation rate was 36.53%.
Similarly, the inflation rate for that earning between Rs22,889 and Rs29,517 per month was 38.43%.
The inflation rate for that earning between Rs29,518 and Rs44,175 per month was 39.65%, the highest in terms of impact.
For those with a monthly income of more than Rs44,176, the rate of inflation has been 39.41%.
According to Katrina Ell, a senior economist at Moody’s Analytics, inflation in Pakistan could average 33% in the first half of 2023 before declining.
She went on to say that a bailout from the International Monetary Fund (IMF) would be insufficient to get the country’s economy back on track.
“What [Pakistan’s] economy really needs is consistent and sound economic management,” said the senior economist in an interview on Wednesday.