SPI rises 7.04% YoY as fuel, utility prices drive inflation despite food price declines

The Sensitive Price Indicator (SPI) recorded a 7.04% year-on-year increase for the week ended March 18, 2026, with higher fuel and utility costs driving inflation despite declines in several food items, according to data released by the Pakistan Bureau of Statistics.

Energy prices remained the main contributor to the increase. Diesel prices rose by nearly 30% compared to the same period last year, while gas charges also increased by a similar margin. Petrol prices were up by more than 25% year-on-year, reflecting continued adjustments in administered energy tariffs.

The increase in energy costs has also affected essential food items. Wheat flour prices rose 26.5% on an annual basis, while beef, mutton and powdered milk also recorded increases, indicating pressure across key household consumption categories.

However, the overall rise in inflation was partially offset by declines in perishable food items. Potato prices fell by more than 50% year-on-year, while chicken and eggs declined by around 20% each. Pulses and sugar also recorded double-digit decreases, limiting the overall increase in the SPI.

On a weekly basis, SPI increased by 0.21%, mainly due to higher vegetable and poultry prices. Tomato prices rose 24.9% during the week, followed by chicken at 7.3% and bread at 1.1%. Prices of energy savers, cigarettes, georgette and firewood also increased.

At the same time, some items recorded week-on-week declines. Garlic prices dropped by 4.8%, onions by 2.5%, while wheat flour and sugar also posted slight decreases. Liquefied petroleum gas (LPG) prices declined by 2.7%.