The sensitive price indicator (SPI) based inflation for the week ending September 22 witnessed a decrease of 8.11% for the combined consumption group compared to the previous week ending September 15, reports WealthPK.
According to economic experts, the weekly inflation rate decreased due to timely food imports from Iran and Afghanistan. The government has taken proactive steps to address food scarcity following the flood devastation in the country.
According to Pakistan Bureau of Statistics (PBS), tomatoes were one of the key commodities that decreased the weekly inflation, with prices dropping 8.15% on a week-over-week (WoW) basis.
Compared to the previous week, the SPI for the combined consumption group in the week under review witnessed a slight decrease of 8.11%.
As per PBS data, commodities that saw a decrease in prices included bananas (1.90%), garlic (1.31%), pulse masoor (0.99%), cooking oil 5 litre (0.78%), onions (0.46%), vegetable ghee 2.5kg (0.34%), vegetable ghee 1kg (0.06%), electricity for Q1 (64.23%) and LPG (3.82%).
However, increase was observed in the prices of wheat flour (22.47%), tea (6.42%), chicken (4.52%), pulse gram (2.54%), bread (2.36%), cigarettes (1.82%), rice basmati broken (1.51%), potatoes (1.45%), pulse moong (1.31%) and rice IRRI 6/9 (1.07%).
According to the PBS, the combined index decreased to 203.21 points on September 22, 2022, compared to 221.14 points on September 15, while the index was recorded at 157.19 points on September 23, 2021.
During the week under review, out of 51 items, the prices of 26 (50.98%) items increased, 10 (19.61%) items decreased and 15 (29.41%) items remained stable.
Credit: Independent News Pakistan-WealthPk
On a year-over-year (YoY) basis, the SPI based inflation for the week ending September 22 witnessed an increase of 29.28% for the combined consumption group compared to the corresponding week of the last year (September 23, 2021).
The PBS reported that an increase was observed in the prices of tomatoes (117.55%), pulse masoor (75.38%), pulse gram (73.55%), mustard oil (65.64%), cooking oil 5 litre (63.63%), vegetable ghee 2.5kg (59.42%), pulse mash (56.93%), vegetable ghee 1kg (56.09%), onions (50.83%), diesel (105.12%), petrol (91.87%), washing soap (61.50%), and LPG (49.89%).
In contrast, a major decrease was observed in the prices of electricity (45.61%), chilies powdered (43.05%), sugar (19.20%) and gur (3.37%).
The prices of 15 items remained stable, including gur (average quality), salt powdered 800 gm, chilies powder 200gm packet, tea prepared ordinary, long cloth, shirting (average quality), lawn printed, gents sandal, gents sponge chappal, ladies sandal, electricity, gas charges up to 3.3719mmbtu, firewood, energy saver 14 watt, hi-speed diesel, and telephone call charges.
The SPI for the lowest consumption group up to Rs17,732 went down 8.45% to 205.98 points in the week under review from 224.98 points the previous week. On a yearly basis, analysis of SPI change across different income segments showed that the SPI increased across all quintiles ranging between 21.98% and 36.08%.
Yearly inflation for the group with monthly income from Rs29,518 to Rs44,175 (Q4) increased by 29.87%, while the highest income group with monthly income above Rs44,175 recorded an increase of 36.08%. Weekly inflation for the group with monthly income from Rs22,889 to 29,517 (Q3) was down by 8.02%.
In addition, there was a mild price difference between the prices of utility stores and the open market (September 22, 2022). The utility stores prices were comparatively lower than the open market. The Utility Stores Corporation (USC) is giving a special subsidy to consumers on pluses, flour, sugar, rice, and ghee under the government’s relief package.
Source: Pakistan Bureau of Statistics
The government has reduced the prices of USC commodities on a variety of items, including flour (20kg) by Rs821.32, tota basmati rice Rs8.56 per kg, daal masoor Rs9.54, chickpeas Rs12.50, sugar Rs17.64, ghee Rs145.63, white gram Rs8.54, super basmati rice Rs5.50, and rice sella by Rs4.20 per kg.