Irfan Ahmed

The sensitive price indicator (SPI) based inflation for the week ending July 28, 2022 witnessed an increase of 37.67% for the combined consumption group, compared to the corresponding week of the previous year (July 29, 2021), reports WealthPK.    

According to Arif Habib Limited, a leading investment banking and research firm, Pakistan is experiencing high inflation due to a massive increase in petroleum prices. Additionally, the currency has been depreciating over the last few weeks, which contributes to the massive inflation.  

According to Pakistan Bureau of Statistics (PBS), on a Year-over-Year (YoY) basis, the commodities registering an increase in prices included pulse masoor (99.14%), chicken (75.65%), cooking oil 5 litre (74.81%), vegetable ghee 1kg (72.90%), mustard oil (72.45%), vegetable ghee 2.5kg (70.51%), onions (64.18%), pulse gram (55.28%), garlic (45.18%), pulse mash (38.35%), diesel (101.53%), petrol (94.15%), washing soap (62.46%), electricity (52.61%), and gents sponge chappal (52.21%).

On the other hand, a major decrease was observed in the prices of powdered chillies (43.42%), sugar (16.48%), and gur (3.28%).

According to the PBS, the combined index was at 207.47 points on July 28, 2022, compared to 200.10 points on July 21, 2022, while the index was recorded at 150.70 points on July 29, 2021.  

During the week, out of 51 items, prices of 30 (58.82%) items increased, seven items’ prices (13.73%) decreased, and 14 (27.45%) items remained stable.

Tomatoes were one of the key commodities that increased the weekly inflation, with prices increasing 17.53% on a week-over-week (WoW) basis.   

Meanwhile, compared to the previous week, the SPI for the combined consumption group in the week under review witnessed a minor increase of 3.68%.

Food commodities that saw an increase in prices included pulse masoor (4.18%), pulse mash (2.87%), pulse gram (2.46%), pulse moong (2.02%), vegetable ghee 2.5kg (1.80%), garlic (1.69%), Basmati broken rice (1.21%), beef with bone (1.03%), Dalda cooking oil (0.92%), powdered salt (0.79%), Lipton tea (0.64%), potatoes (0.63%), rice irri-6/9 (Sindh/Punjab) (0.55%), milk fresh (0.41%), bread plain (0.38%), curd (0.37%), Nido powdered milk (0.32%), electricity (26.11%), LPG (7.02%), washing soap (2.34%), energy saver (1.03%), match box (0.76%), and shirting (0.14%).

On the other hand, decrease was observed in the prices of onions (10.84%), chicken (9.47%), bananas (4.24%), wheat flour (2.55%), mustard oil (1.50%), vegetable ghee 1kg (0.46%) and eggs (0.36%).

Alternatively, the prices of 14 items remained stable including gur (average quality), chilies powder, long cloth 57" Gul Ahmed/Al Karam, printed lawn Gul Ahmed/Al Karam, georgette (average quality), gents sandal Bata, gents sponge chappal Bata, ladies sandal Bata pair, gas charges up to 3.3719 mmbtu, firewood whole, match box, petrol super, hi-speed diesel, and telephone call charges.

The SPI for the lowest consumption group up to Rs17,732 witnessed an increase of 3.27% and went up to 213.55 points during the week under review from 206.79 points last week. On a yearly basis, analysis of the SPI change across different income segments showed that SPI increased across all quintiles ranging between 31.23% and 38.06%.    

Yearly inflation for the group with a monthly income from Rs29,518 to Rs44,175 (Q4) increased by 35.09%, while the highest income group with a monthly income above Rs44,175 recorded an increase of 38.06%.

On the other hand, weekly inflation for the group with a monthly income from Rs22,889 to 29,517 (Q3) increased by 3.23%.  

In addition, there was a mild price difference between the prices of utility stores and the open market (June 28, 2022). The Utility stores’ prices are comparatively lesser than the open market. The Utility Stores Corporation (USC) is giving a special subsidy to consumers on pulses, flour, sugar, rice, and ghee under the government’s relief package.

The government has reduced the prices of utility stores commodities on a variety of items, including flour 20kg by Rs417.89, tota Basmati rice by Rs35.57 per kg, daal masoor by Rs42.37, chana by Rs36.38 per kg, sugar by Rs17.90 per kg, ghee Manpasand by Rs127.58 per kg, ghee Handi by Rs127.70 per kg, super Basmati rice by Rs59.97 per kg, and rice Sella by Rs60.74 per kg.   

Source: Pakistan Bureau of Statistics

Independent News Pakistan-Wealthpk