KARACHI: The Sensitive Price Indicator (SPI) has recorded a significant drop in weekly inflation, reaching a three-year low of 12.27% for the week ending September 19, 2024, compared to the same period last year.
According to the Pakistan Bureau of Statistics (PBS), short-term inflation on a week-on-week basis also fell by 0.52%, largely driven by decreasing energy and food prices. This downward trend suggests that the previous rise in inflation was likely temporary.
The week-on-week SPI decline was primarily attributed to a 5% decrease in high-speed diesel prices, which fell to Rs250.76 per liter from Rs263.96. Onion prices also dropped by 4.45%, now priced at Rs143.75 per kilogram. Additionally, petrol prices saw a reduction of 3.88%, decreasing to Rs250.20 per liter from Rs260.31, while tomatoes experienced a 1.93% decline to Rs116.91 per kilogram. Sugar prices fell by 0.70%, settling at Rs141.28 per kilogram.
Other essential items, such as potatoes, LPG, cooking oil, and various pulses, saw decreases of up to 0.57%. However, some essential goods experienced price increases of up to 1.50%, including pulses, cooked beef, eggs, garlic, gur, salt powder, and shirting fabric.
The SPI data covers 51 essential commodities, with the PBS collecting pricing data from 50 markets across 17 cities. Out of these 51 items, 17 (33.34%) saw price increases, 15 (29.41%) experienced decreases, and 19 (37.25%) remained unchanged compared to the previous week.
Year-on-year, inflation has increased by 12.72%, driven largely by a staggering 570% rise in gas charges and a 74.62% increase in onion prices.
Despite inflation remaining in double digits, experts anticipate further improvement, with the possibility of it dropping to single digits in the coming months. The Consumer Price Index (CPI) fell to 9.6% in August, marking the first decline in three years, and experts expect further deceleration below 8% in September, aided by delays in power price hikes and significant reductions in global oil prices.
