Irfan Ahmed

The sensitive price indicator (SPI) based on inflation for the week ending on November 3 witnessed an increase of 30.60% as compared to last year, WealthPK reports.

Inflation in the preceding week was measured at 30.68% on a year-on-year basis as prices of vegetables surged following the damage caused to the agriculture sector by the recent floods.

However, on a week-on-week basis, inflation surged by 0.53%, mainly due to the high prices of perishable food items. It is projected that CPI-based inflation will rise to 19.9% in the current fiscal, up from 12.1% in the previous financial year 2021-22, according to the International Monetary Fund (IMF).

According to the Pakistan Bureau of Statistics (PBS), the price of onions increased by 213.16%, tomatoes by 79.14%, pulse gram by 62.52%, pulse Moong by 55.40, a five-litre packet of cooking oil by 54.36%, vegetable ghee by 51.78%, bananas by 50.23%, pulse Mash by 49.25%, pulse Masoor by 47.73% and mustard oil by 45.53%.

In non-food items, the price of diesel witnessed an increase of 74.51%, petrol 62.75%, gents’ sponge chappal 52.21%, and washing soap 51.91%.

On the other hand, the price of powdered chilies registered a decrease of 41.85%, sugar 20.29% and gur (raw sugar) 5.56%.

According to the PBS data, the combined index increased to 214.88 points on November 3, 2022, as compared to 213.74 points on October 27, 2022, while the index was recorded at 164.53 points on November 4, 2021.

The SPI monitors the prices of 51 essential items based on a survey of 50 markets in 17 cities of the country. During the week, out of 51, the prices of 21 items increased, rates of nine goods decreased and that of 21 items remained stable.

Tomatoes were one of the key commodities that increased the weekly inflation, with its price showing a surge of15.97% 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 slight increase of 0.53%.

According to Arif Habib Limited, headline inflation remains elevated while core inflation continues its upward trajectory. However, with a high base effect kicking in, headline numbers are expected to come down.

Food commodities that saw a major increase in prices included onions by 9.38%, bananas by 3.77%, potatoes by 2.88% and powdered salt by 2.58% while in non-food items the rate of matchbox surged by 1.34%.

On the other hand, the prices of chicken decreased by 3.77%, pulse Masoor by 2.25%, liquified petroleum gas by 1.75%, pulse gram by 1.08%, vegetable ghee by 0.17%, pulse Mash by 0.16%, cooking oil by 0.08% and wheat flour by 0.07%.

Alternatively, the prices of 21 items remained stable including plain bread, beef with bone, curd, mustard oil, gur (raw sugar), powdered chilies, tea, cloth, shirting, gents’ sandal, sponge chappal, ladies’ sandal, energy saver, petrol and diesel besides tariffs of electricity, gas and telephone call.

The SPI for the lowest consumption group up to Rs17,732 income observed an increase of 0.90% and went up to 222.55 points from 220.56 points in the last week. On a yearly basis, SPI increased across all quintiles ranging between 26.72% and 31.67%. 

Yearly inflation for the group with a monthly income from Rs29,518 to Rs44,175 (Q4) increased by 31.41%, while the highest income group with a monthly income above Rs44,175 recorded an increase of 31.67%. 

In the meantime, the weekly inflation for the group with a monthly income from Rs22,889 to 29,517 (Q3) increased by 0.68%.

There is a mild price difference between the prices of items at utility stores and the open market. The prices of commodities at utility stores are comparatively lesser than those in the open market. The Utility Stores Corporation is giving a special subsidy to consumers on pulses, flour, sugar, rice, and ghee under a government relief package.

The government has reduced the prices of commodities including a 20-kilogram bag of flour by Rs723.76, Tota basmati rice by Rs11.33 per kilogram, pulse gram by Rs9.17 per kilogram, sugar by Rs17.75 per kilogram, ghee Manpasand by Rs144.38, ghee Handi by Rs109.76 per kg and white gram by Rs10.03 per kilogram at utility stores, according to the data available with WealthPK.

Source: Pakistan Bureau of Statistics

Credit : Independent News Pakistan-WealthPk