The Sensitive Price Index (SPI)-based inflation for the week concluding on December 14, 2023, has witnessed a staggering surge of over 43 percent on a year-on-year basis, as depicted by data released by the Pakistan Bureau of Statistics (PBS). The alarming spike in inflation in Pakistan has ignited concerns and raised questions about the country’s economic stability and affordability of essential commodities.
The Drivers of Inflation in Pakistan
The year-on-year trend exposes a significant increase of 43.16 percent, primarily attributed to soaring prices in critical sectors such as gas charges for q1 (1108.59 percent), cigarettes (93.22 percent), chilies powder (81.74 percent), wheat flour (81.40 percent), garlic (71.17 percent), rice basmati broken (64.30 percent), rice irri-6/9 (60.64 percent), sugar (50.52 percent), gur (50.42 percent), and pulse mash (44.80 percent). Simultaneously, a slight relief was witnessed with decreases in the prices of onions (25.11 percent), mustard oil (4.40 percent), vegetable ghee 1 kg (2.12 percent), bananas (1.05 percent), and vegetable ghee 2.5 kg (0.95 percent).
Weekly Dynamics of the Trend
Despite a marginal weekly decrease of 0.06 percent, attributable to declines in potato (12.18 percent), tomato (5.18 percent), and chicken (1.19 percent) prices, the overall picture remains grim. Out of 51 items surveyed, the prices of 19 items increased, 10 decreased, and 22 remained stable during the week. The consequential impact on consumers is palpable, with essential items such as sugar, pulses, and eggs experiencing notable price hikes, while some relief is found in the reduced prices of certain vegetables and cooking essentials.
Read more: Pakistan Weekly Inflation Eases to 29.65 Percent Offering Respite to Consumers
