Weekly inflation eases, but still in double digits

ISLAMABAD: Weekly inflation eased for third straight week, but has remained in double digits for most of the period of current fiscal year, squeezing the middle and low income groups.

Weekly Sensitive Price Indicator (SPI) for the week ended on December 9, recorded at 18.58 percent over corresponding week a year ago, data from Pakistan Bureau of Statistics (PBS) showed on Friday.

On week-on-week basis SPI eased 0.07 percent. Last week, SPI was recorded at 18.35 percent.

This was the third consecutive week that SPI has slipped over previous week on the back of increase in supplies of commodities. Besides, prices of tomatoes, chicken, potatoes, LPG prices also reduced. However, prices of all pulses and vegetable ghee and cooking oil increased.

SPI is based on 51 essential items and their prices are being collected from 50 markets in 17 cities.

For the week, average prices of 19 items (37.25pc) registered an increase, nine items (17.65pc) registered a decrease, while prices of 23 items (45.1pc) remained stable.

According to the data, tomatoes price in one week declined 13.37 percent to Rs85/kilogram, chicken (farm) 12.8 percent to Rs209/kg, potatoes 4.5 percent to Rs56/kg, LPG (11.67kg cylinder) 2.96 percent to Rs2,345.17, while sugar’s price slipped 1.03 percent to Rs91/kg.

The SPI also recorded an increase in the prices of some items, including bananas up 3.34 percent to Rs76/dozen, masoor pulse 3.3 percent to Rs194/kg, gram pulse 2.83 percent to 153/kg, mash pulse 2.78 percent to Rs261/kg, moong pulse 2.3 percent to Rs170/kg, washing soap 2.2 percent to Rs76/cake, onions 1.65 percent to Rs40/kg, fresh milk 0.74 percent to Rs114/litre, cooking oil (5ltr tin) 0.73 percent to Rs2,056, garlic 0.68 percent Rs285/kg and firewood price increased by 0.5 percent to Rs778/40kg over previous week.

The bureau further reported that year-on-year, electricity charges for Q-1 increased 75 percent, LPG 65 percent, cooking oil 61 percent, vegetable ghee 58 percent, mustard oil 55 percent, washing soap 46 percent, petrol 44 percent, diesel 35 percent, gents sandal 33 percent, masoor pulse 24 percent, beef 22 percent, wheat flour and garlic 21 percent each, mutton 17 percent, phone calls charges 15 percent and basmati rice price up 11 percent over same week prices of last year.

However, y-on-y basis, prices of onions declined by 32 percent, tomatoes 28 percent, moong pulse 25 percent, potatoes 18 percent and chicken price down by 13 percent over same week of last year.