According to the Sensitive Price Indicator (SPI) for the week ending January 16, 2025, year-on-year inflation rose by 1.16%, marking the lowest rate in months and easing inflationary pressures in Pakistan.
Data from the Pakistan Bureau of Statistics (PBS) showed a weekly decrease of 0.39% in SPI, indicating lower prices in essential food items.
Tomatoes saw the largest price drop, falling by 18.31%, followed by potatoes (-10.42%), onions (-10.01%), and eggs (-8.64%). Other notable declines included chicken (-2.17%), liquefied petroleum gas (-1.21%), and mustard oil (-0.67%).
However, some items saw price hikes. Bananas posted the largest increase, rising by 3.22%, while petrol prices increased by 1.39%. Other inflation contributors included vegetable ghee (+1.08%), cooking oil (+1.01%), firewood (+1.00%), and diesel (+0.99%).
On an annual basis, several items saw significant price hikes, with ladies’ sandals topping the list at +75.09%, followed by potatoes (+47.91%), gram pulses (+39.77%), and moong pulses (+33.40%).
Notable year-on-year price reductions included onions (-47.22%), wheat flour (-35.89%), and eggs (-31.92%).
SPI data showed varying effects across income groups, with the lowest-income households (earning less than Rs 17,732 per month) experiencing a 0.20% year-on-year increase, while the highest-income group (earning above Rs 44,175) saw a 1.66% rise.
The easing inflation could influence the State Bank of Pakistan’s monetary policy, with a potential reduction in the policy rate currently at 13% to support economic growth.
