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Pakistan’s Weekly Inflation Goes Up by 18.47%

February 18, 2022

By Irfan Ahmed ISLAMABAD, Feb. 18 (INP-Wealth) The sensitive price indicator (SPI) based inflation for the week ending February 10 witnessed an increase of 18.47% for the combined consumption group compared to the corresponding week of the last year (11 Feb 21), according to the Pakistan Bureau of Statistics (PBS). On a Year-on-Year (YoY) basis, the commodities registering an increase in prices included food items tomatoes (289.04%), mustard oil (48.51%), cooking oil 5 liter (40.54%), vegetable ghee 1 kg (38.81%), vegetable ghee 2.5 Kg tin (39.05%), pulse Masoor (38.00%), garlic (45.60%), and non-food items electricity (74.88%), LPG (51.76%), washing soap 250gm (38.40%), and petrol super (31.59%). On the other hand, a major decrease was observed in the prices of chilies powder (31.44%), pulse Moong (27.75%), sugar (4.78%), chicken (4.51%), onions (4.16%) and potatoes (1.60%). According to the PBS, the combined index was at 169.23 on February 10, 2022 compared to 169.37 on February 3, 2022, while the index was recorded at 142.85 on February 11, 2021. During the week, out of 51 items, prices of 16 (31.37%) items increased, 14 (27.45%) items decreased and 21 (41.18%) items remained stable. Tomatoes were one of the key commodities that decreased the weekly inflation, with prices decreasing 14.86% on a Week-on-Week (WoW) basis. Meanwhile, compared to the previous week, the SPI for the combined consumption group in the week under review witnessed a decrease of 0.08%. Food commodities that saw a decrease in prices included tomatoes (14.86%), chilies powder (3.30%), potatoes (2.92%), onions (2.66%), eggs (2.05%), sugar (1.43%), pulse Moong (0.99%), tea prepared (0.50%), pulse Gram (0.48%), gur (0.39%), pulse Mash (0.37%), wheat flour (0.15%), pulse Masoor (0.13%) and non-food item LPG (1.49%). On the other hand, increase was observed in the prices of garlic (7.03%), chicken (5.65%), bananas (3.57%), salt (1.81%), mustard oil 1Kg (0.97%), vegetable ghee Dalda 1kg (0.88%), vegetable ghee Dalda 2.5kg tin (0.86%), firewood whole 40Kg (0.76%), Sufi washing soap 250gm (0.69%), match box (0.55%), mutton 1Kg (0.43%), rice Basmati broken 1Kg (0.43%), beef with bone 1Kg (0.32%), toilet soap Lifebuoy 115gm (0.30%), cooking oil Dalda 5 liter tin (0.28%), and cooked daal at average hotel per plate (0.27%). Alternatively, the prices of 21 items remained stable including rice IRRI-6/9 (Sindh/Punjab) 1Kg, bread plain (small size), powdered milk Nido, curd, tea Lipton Yellow Label, cooked beef at the average hotel per plate, cigarettes Capstan, long cloth 57" Gul Ahmed/Al Karam, Lawn Printed Gul Ahmed/Al Karam, Georgette, Gents sandal Bata pair, gents sponge chappal Bata pair, ladies sandal Bata pair, 8 energy saver Philips 14Watt, electricity charges for Q1 per unit, gas charges up to 3.3719 MMBTU, petrol Super, Hi-Speed Diesel, and telephone call charges. The SPI for the lowest consumption group up to Rs. 17,732 observed a decrease by 0.24% and went down to 169.23 this week from 169.37 points last week. On a yearly basis, analysis of SPI change across different income segments showed that SPI increased across all quintiles ranging between 16.65% and 20.25%. Yearly inflation for the group having monthly income from Rs. 29,518 to Rs44,175 (Q4) increased by 16.65%, while the highest income group having monthly income above Rs44,175 recorded an increase of 18.71%. In addition, there was a mild price difference between the prices of Utility Stores and open market (Feb 10, 2022). The Utility Stores prices were comparatively lesser than the open market. The USC will give a special subsidy to the consumers on pluses, flour, sugar, rice, and ghee under the government relief package. The government has reduced the prices of Utility Store’s commodities on a variety of items including flour 20Kg for Rs218.00, Tota Basmati rice for Rs17.95 per kg, Chana for Rs3.48 per kg, sugar for Rs4.12 per kg, ghee Manpasand for Rs65.03 per kg, ghee Handi for Rs93.90 per kg, Super Basmati rice for Rs20.27 per kg, and rice Sella for Rs21.73 per kg. Source: Pakistan Bureau of Statistics To counteract inflation, the government should undertake new measures to boost exports and encourage foreign direct investment.