Farooq Awan

Households in the lowest income group continued to face annual inflationary pressure, with the Sensitive Price Indicator (SPI) recording a 2.42% year-on-year increase for the lowest consumption quintile during the week ended January 08, 2026, according to data released by the Pakistan Bureau of Statistics (PBS).

The SPI is compiled weekly to track short-term price movements of essential commodities and is based on prices of 51 items collected from 50 markets in 17 urban centres. The index is calculated separately for five consumption quintiles to reflect the impact of price changes on households with different income levels.

According to PBS data, the SPI for the lowest consumption quintile (Q1), covering households with monthly expenditure of up to Rs17,732, increased to 324.37 during the reporting week, compared to 316.72 in the corresponding week last year. This resulted in a 2.42% year-on-year increase for the lowest income group.

On a week-on-week basis, the SPI for the lowest consumption quintile also increased by 0.12%, reflecting short-term price pressures faced by low-income households. The week-on-week increase mirrors the overall trend observed in the combined SPI, which also rose by 0.12% during the week.

PBS data shows that year-on-year inflation for the lowest income group was lower than that recorded for some other consumption quintiles. The second quintile (Q2) recorded a 3.65% annual increase, while the third and fourth quintiles posted year-on-year increases of 3.43% and 3.08%, respectively. The highest consumption quintile (Q5) recorded a 2.58% year-on-year increase.

The SPI executive summary indicates that price movements in essential food and non-food items contributed to the annual inflation recorded for the lowest income group. Items with higher weights in the consumption basket of low-income households, such as wheat flour and other staple food items, played a role in shaping the year-on-year SPI trend.

The SPI is designed to provide timely information on the price situation faced by households, particularly those with limited purchasing power. By tracking weekly and annual changes across different income groups, the index helps assess how inflationary pressures vary across consumption quintiles.

Credit: INP-WealthPk