Short-term inflation stays above 25pc

Published August 26, 2023
Official data showed that the prices of 22 goods soared, 12 dropped and 17 remained unchanged over the previous week. — APP/file
Official data showed that the prices of 22 goods soared, 12 dropped and 17 remained unchanged over the previous week. — APP/file

ISLAMABAD: The short-term inflation saw a 25.34 per cent increase on a year-on-year basis for the week ending on Aug 25 due to a surge in the prices of kitchen items, showed the official data released on Friday.

It, however, decelerated from the preceding week’s 27.57pc.

On a week-on-week basis, the weekly inflation, measured by the Sensitive Price Index (SPI), rose 0.05pc, showing a rising trend for the past five consecutive weeks.

Of the 51 items in the SPI basket, prices of 22 goods soared, 12 dropped and 17 remained unchanged compared to the previous week.

During the week under review, the items whose prices increased the most over the same week a year ago were: wheat flour (129.38pc), gas charges for Q1 (108.38pc), cigarettes (102.31pc), tea Lipton (93.94pc), rice basmati broken (89.56pc), chillies powder (86.05pc), sugar (81.21pc), rice Irri-6/9 (80.54pc), gur (63.59pc), gents sponge chappal (58.05pc), salt powdered (49.09pc), chicken (48.58pc) and bread (46.37pc).

The biggest rise week-on-week was in the price of onions (23.56pc), pulse masoor (3.66pc), sugar (3.43pc), garlic (2.17pc), eggs (2.13pc), cooked daal (2.04pc), pulse mash (1.52pc), energy saver (1.89pc) and long cloth (1.51pc).

In May, the SPI stayed above 45pc for three weeks after hitting an all-time high at 48.35pc on May 4.

The rupee depreciation, rising petrol prices, sales tax and electricity bills are among the key contributors to this inflationary trend.

According to the latest IMF forecast, the average Consumer Price Index (CPI) for the current fiscal year is projected to be 25.9pc from the previous year’s 29.6pc.

Meanwhile, a decrease was also observed on a week-on-week basis in prices of tomatoes (22.16pc), chicken (5.44pc), rice Irri-6/9 (1.70pc), potatoes (1.43pc), bananas (1.22pc), vegetable ghee 2.5 kg (0.97pc), mustard oil (0.87pc), cooking oil 5-litre (0.67pc), pulse gram (0.49pc), LPG (0.43pc) and wheat flour (0.25pc).

Published in Dawn, August 26th, 2023

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Rushed legislation
Updated 06 Nov, 2024

Rushed legislation

For all its stress on "supremacy of parliament", the ruling coalition has wasted no opportunity to reiterate where its allegiances truly lie.
Jail reform policy
06 Nov, 2024

Jail reform policy

THE state is making a fresh attempt to improve conditions in Pakistan’s penitentiaries by developing a national...
BISP overhaul
06 Nov, 2024

BISP overhaul

IT has emerged that the spouses of over 28,500 Sindh government employees have been illicitly benefiting from BISP....
Smog hazard
Updated 05 Nov, 2024

Smog hazard

The catastrophe unfolding in Lahore is a product of authorities’ repeated failure to recognise environmental impact of rapid urbanisation.
Monetary policy
05 Nov, 2024

Monetary policy

IN an aggressive move, the State Bank on Monday reduced its key policy rate by a hefty 250bps to 15pc. This is the...
Cultural power
05 Nov, 2024

Cultural power

AS vital modes of communication, art and culture have the power to overcome social and international barriers....