- Food prices drive inflation upward, though some essentials see price cuts.
- Annual SPI rises 0.32%, with notable spikes in key household items.
- Lower-income groups face mixed trends, with some minor relief noted.
KARACHI: Inflation recorded a slight uptick in the last week of February, primarily driven by the rising costs of essential food items, as households prepared for Ramadan. According to data from the Pakistan Bureau of Statistics (PBS), the Sensitive Price Indicator (SPI) saw a 0.38% increase compared to the previous week, The News reported.
The main contributor to this rise was the significant jump in prices of various food staples. Tomatoes saw the highest increase at 11.49%, followed by bananas (8.32%), eggs (5.43%), chicken (4.13%), potatoes (2.79%), and onions (2.04%). Additionally, beef, sugar, and cigarettes experienced smaller price hikes of 1.68%, 1.55%, and 0.51%, respectively.
Conversely, some everyday commodities became more affordable. Lipton tea prices dropped by 6.62%, while bread, mustard oil, garlic, and certain pulses saw moderate decreases of 1.67%, 1.08%, 1.0%, and 1.12%, respectively. Additionally, liquefied petroleum gas (LPG) fell by 0.37%, providing slight relief to households burdened by high energy costs.
On a yearly scale, the SPI registered a 0.32% increase, with sharp rises in several consumer goods. Prices of ladies’ sandals saw a remarkable surge of 75.09%, while staple food items such as pulse moong, bananas, and powdered milk rose by 28.47%, 27.78%, and 25.86%, respectively. The costs of beef, potatoes, and vegetable ghee also trended upward.
However, some essential goods became significantly cheaper over the past year. The price of onions dropped by 50.26%, while tomatoes saw a 48.14% decline. Wheat flour also became 36.99% more affordable. Other notable reductions included chili powder, electricity charges, pulses, and petroleum products, with diesel and petrol prices decreasing by 8.07% and 6.97%, respectively, reflecting global trends in the energy market.
Lower-income households remain the most vulnerable to these fluctuations. SPI analysis by expenditure group indicated that the lowest quintile saw a 0.36% weekly inflation rise, whereas the highest quintile recorded a slightly lower 0.33% increase.
On an annual basis, however, inflation hit higher-income households harder, with a 1.27% increase, while lower-income groups experienced a slight deflation. This disparity suggests that inflationary pressures have had uneven effects across different economic segments.
