Short-term inflation reaches 42.6%: PBS

In the week ending December 21, the Sensitive Price Index (SPI) reported a year-on-year increase of 42.6%, marking the sixth consecutive week with inflation above 41%, according to the Pakistan Bureau of Statistics (PBS).

The rise in short-term inflation is attributed to an unprecedented 1,109% increase in gas rates and increased prices of essential kitchen items, including wheat, rice, chillies, tomatoes, and sugar.

During the week ending December 21, the prices of cigarettes surged by 93.22%, while chilli powder became 82% more expensive compared to the previous year. Wheat flour prices increased by 78.8%, followed by garlic (72.5%), broken rice basmati (62.5%), and rice IRRI-6 and 9 (59.45%).

Other notable increases include gents sponge chappal (58.05%), tomatoes (56.89%), gents sandal (53.37%), sugar (50.33%), and gur (49.86%).

Conversely, some items experienced a decrease in prices on an annualized basis, including onions (23.92%), mustard oil (4.24%), and various quantities of vegetable ghee. The SPI for the week ending December 21 saw a 0.51% decrease compared to the previous week, with reductions in the prices of potatoes, petrol super, diesel, tomatoes, sugar, wheat flour bag, chicken, rice Basmati broken, and cooking oil 5-litre.

The PBS reported that out of 51 items, prices of 18 items (35.29%) increased, nine items (17.65%) decreased, and 24 items (47.06%) remained stable during the week under review.