The sensitive price indicator (SPI) based on inflation for the week ending September 8, witnessed an increase of 42.70% for the combined consumption group compared to the corresponding week of the last year (September 9, 2021), INP-WealthPK reported.      

According to economists, Pakistan is experiencing a high inflation rate due to the depreciation of the rupee, high transportation costs, and flooding.

According to the Pakistan Bureau of Statistics (PBS), an increase was observed in the prices of food items including Tomatoes (144.25%), Pulse Masoor (76.34%), Cooking Oil 5 litre tin (67.99%), Mustard Oil (66.53%), Vegetable Ghee 2.5 kg (62.53%), Pulse Gram (61.02%), Onions (59.97%), Vegetable Ghee 1 kg (58.19%) and non-food items including Diesel (114.08%), Petrol (98.73%), LPG (64.98%), Washing Soap (64.50%), and Electricity (63.03%).

According to the PBS, the combined index decreased to 221.55 points on September 8, 2022, compared to 222.85 points on September 1, 2022, while the index was recorded at 155.26 points on September 9, 2021.     

Finance Minister, Miftah Ismail said inflation will begin to decrease starting next month, after hitting a multi-decade high of 27.3% in August.

During the week, out of 51 items, prices of 26 (50.98%) items increased, 9 (17.65%) items decreased and 16 (31.37%) items remained stable.

Onions were one of the key commodities that decreased the weekly inflation, with prices decreasing 41.99% on a week-on-week basis.    

Meanwhile, compared to the previous week, the SPI for the combined consumption group in the week under review witnessed a decrease of 0.58%.

Food commodities that saw a decrease in prices included Tomatoes (8.11%), Bananas (2.51%), Pulse Masoor (1.37%), Vegetable Ghee 1Kg (0.55%), Cooking Oil 5 litre (0.33%), Mustard Oil (0.16%) and Vegetable Ghee 2.5 kg & Sugar (0.11%) each.

On the other hand, an increase was observed in the prices of LPG (10.66%), Wheat Flour (4.15%), Eggs (3.96%), Bread (3.27%), Pulse Moong (2.74%), Curd (2.72%), Tea Lipton (2.50%), Pulse Gram (1.65%), Chicken (1.58%), Milk Fresh (1.57%), Firewood (1.54%) and Potatoes (1.02%).

Alternatively, the prices of 16 items remained stable including Salt Powder National/Shan, Chilli Powder National, Tea Lipton, Cooked Beef at an average hotel, Long Cloth 57" Gul Ahmed/Al Karam, Lawn Printed Gul Ahmed/Al Karam, Georgette (Average Quality), Gents Sandal Bata, Gents Sponge Chappal Bata, Ladies Sandal Bata Pair, Electricity, Gas Charges up to 3.3719 MMBTU, Energy Saver Bulb Philips, Petrol Super, Hi-Speed Diesel, and Telephone Call Charges.  

The SPI for the lowest consumption group up to Rs17,732 observed a decrease of 1.52% and went down to 225.67 points this week from 229.15 points last week. On a yearly basis, analysis of SPI change across different income segments showed that SPI increased across all quintiles ranging between 34.47% and 44.01%.      

Yearly inflation for the group with monthly income from Rs29,518 to Rs44,175 (Q4) increased by 39.59%, while the highest income group with monthly income above Rs44,175 recorded an increase of 44.01%.

In the meantime, weekly inflation for the group with monthly income from Rs22,889 to 29,517 (Q3) was down by 0.97%.    

Furthermore, Utility Stores have slightly low prices than the open market (September 8, 2022). Under the government's relief package, the Utility Stores Corporation is subsidizing Pulses, Flour, Sugar, Rice, and Ghee for consumers.

The government has reduced the prices of Utility Stores commodities on a variety of items, including Flour 20kg by Rs498.49, Tota Basmati Rice by Rs37,30 per kg, Daal Masoor by Rs12.27 per kg, Chana by Rs24.93 per kg, Sugar by Rs17.76 per kg, Ghee Manpasand by Rs147.99 per kg, Ghee Handi by Rs 114.47 per kg, White Gram by Rs8.83, Super Basmati Rice by Rs84.90 per kg, and Rice Sella by Rs77.91 per kg.  

Credit : Independent News Pakistan-WealthPk