Short-term inflation surges past 10pc

Published
0

ISLAMABAD: Short-term inflation, measured by the Sensitive Price Index (SPI), surged by 10.64 per cent year-on-year for the week ending Sept 17, mainly due to higher energy prices, according to official data released on Friday.

Short-term inflation entered a double-digit upward spiral. Unwilling to reduce the petroleum levy, the government is steadily increasing petrol and diesel prices on a daily basis. Rising energy prices are also indirectly contributing to higher sales tax collections.

At the same time, the unprecedented increase in transport costs has also been reflected in the prices of essential food items, including onions, tomatoes and other vegetables.

On a week-on-week basis, the index increased by 0.49pc, according to the Pakistan Bureau of Statistics.

Price pressure mounts on costly petrol and diesel

The overall SPI showed a broad-based rise, indicating continued pressure on the cost of living. The increase was largely driven by sharp year-on-year gains in key items, including petrol (48pc), diesel (54.21pc), LPG (60.42pc) and wheat flour (33.27pc).

The SPI has now risen for the 73rd consecutive week, reflecting sustained pressure on consumers.

This is an example of cost-push inflation, where increased energy prices are followed by higher food costs. Consequently, average households face greater financial pressure as consumer prices rise.

The items with the largest price increases over the previous week included diesel (7.29pc), petrol (6.40pc), LPG (3.26pc), garlic (1.94pc), eggs (1.72pc), pulse gram (0.80pc), plain bread (0.74pc), pulse masoor (0.49pc), mustard oil (0.44pc), pulse moong (0.39pc), mutton (0.26pc) and firewood (0.07pc).

The items whose prices declined week-on-week included bananas (6.17pc), tomatoes (5.66pc), onions (4.57pc), chicken (2.33pc), powdered milk (0.40pc), wheat flour (0.28pc), rice IRRI-6/9 (0.16pc) and sugar (0.14pc).

However, on an annual basis, the items whose prices increased the most were onions (117.77pc), LPG (60.42pc), diesel (54.21pc), petrol (48pc), electricity for Q1 (33.54pc), wheat flour (33.27pc), chilli powder (16.37pc), mutton (15.86pc), beef (12.88pc), bananas (9.24pc), plain bread (8.89pc) and fresh milk (8.12pc).

In contrast, the prices of potatoes fell 35.31pc, followed by sugar (20.95pc), eggs (19.31pc), chicken (15.26pc), salt powder (13.96pc), pulse gram (12.42pc), pulse masoor (11.26pc) and pulse moong (8.49pc).

The index, comprising 51 items collected from 50 markets in 17 cities, is computed weekly to assess the prices of essential commodities and services at shorter intervals.

Data showed that the prices of 19 items increased, 9 decreased, and 23 remained stable compared to the previous week.

Published in Dawn, September 19th, 2026

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

Opinion

Editorial

No talks
Updated 17 Oct, 2026

No talks

The government should understand that the PTI’s protest march and its reaction to it will look like nothing more than a storm in a teacup.
Strengthening LGs
17 Oct, 2026

Strengthening LGs

THE ECP has done well to refuse to allow the Punjab administration to push the local government elections to April....
Lesser citizens
Updated 17 Oct, 2026

Lesser citizens

Interfaith harmony will prevail when the message to end bias is conveyed from the pulpit, alongside efforts to punish zealotry.
Deadly classrooms
Updated 16 Oct, 2026

Deadly classrooms

Parents should not have to become structural engineers to judge whether their children are safe at school.
Diplomatic options
Updated 16 Oct, 2026

Diplomatic options

Regional states know that the alternative to talks — a fully fledged war on both fronts — will bring immeasurable destruction to the Gulf, the Red Sea and the surrounding areas.
Hunger in Pakistan
16 Oct, 2026

Hunger in Pakistan

PAKISTAN’S position as the country most affected by hunger in South Asia is not surprising. An economy battered by...