KARACHI: Short-term inflation in Pakistan, as measured by the Sensitive Price Indicator (SPI), witnessed a slight decline of 0.26 percent for the week ending January 2, 2025, according to data released by the Pakistan Bureau of Statistics (PBS).
Year-on-year inflation for the same week recorded an increase of 3.97%, reflecting continued price pressures despite the weekly decline.
Among food products, prices of tomatoes fell significantly by 13.48%, followed by reductions in electricity tariffs in the first quarter (7.48%), potatoes (5.59%) and of several legumes, including gram (-0.34%) and puree (-0.05%). Marginal declines were also seen in the prices of eggs (-0.23%), garlic (-0.21%), LPG (-0.18%) and wheat flour (-0 .09%).
Conversely, chicken prices jumped 10.28%, marking the highest weekly increase, followed by onions (4.93%), bananas (1.68%) and diesel (1.18%). %). Other notable increases include sugar (0.95%), moong pulse (1.08%) and vegetable ghee in 2.5 kg and 1 kg packets (up 0.53% and 0.28 %, respectively).
Of the 51 essential items monitored, the prices of 18 items (35.29%) increased, 10 items (19.61%) decreased, and 23 items (45.1%) remained stable.
The annual data revealed that tomatoes are the main contributor to inflation, with prices increasing by 77.84%, followed by significant increases in potatoes (66.63%), pulses (47.53%). %) and sandals for women (75.09%). However, substantial relief was observed in the prices of wheat flour (-36.12%), onions (-29.95%) and eggs (-15.78%).
The inflationary impact varied across income groups, with the lowest quintile (monthly income up to Rs 17,732) experiencing a weekly decline of 0.51%, while the highest income group (monthly income above Rs 44,175) recorded a modest decline of 0.10%.
The data highlights mixed trends in prices of key raw materials, reflecting the interplay of seasonal factors, supply chain dynamics and policy measures aimed at stabilizing inflation.
According to data released on Wednesday, Pakistan’s inflation rate calmed down to 4.07% in December 2024 from 4.86% in November, and saw a dramatic decline from 29.66% a year ago. year earlier. This is the lowest inflation rate in almost seven years and the fifth consecutive month of single-digit inflation – a milestone last reached in early 2021.
During the first half of the financial year 2024-25 (July-December), average inflation fell to 7.22 per cent, a stark contrast to the 28.79 per cent in the same period last year, according to the PBS.
Economists cite stable commodity markets, improving supply chains and a relatively stable rupee as driving factors, although they also attribute a “base effect” to the year’s high inflation rates. last.