ISLAMABAD: The Weekly Sensitive Price Indicator (SPI) has declined for the fifth consecutive week. The SPI, a key measure of inflation for essential commodities, fell 1.06 per cent during the week ending May 16, 2024, compared to the previous week.
However, despite this short-term relief, prices remain significantly higher on an annual basis. The SPI is still up 21.22 per cent year-on-year (YoY) compared to the same period last year.
Annual inflation persists?
The recent decline marks a positive trend, offering some breathing room for consumers who have been struggling with high prices. The Pakistan Bureau of Statistics (PBS) reported the Combined Index at 309.25, down from 312.56 the week before. However, it’s important to note that this is still considerably higher than the 255.12 recorded a year ago.
Price movements across different items
The price changes varied throughout the week for the 51 monitored items. Nearly 40 per cent (20 items) saw price increases, while over 30 per cent (16 items) experienced price decreases. The remaining 29.41 per cent (15 items) remained stable.
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Some significant price drops were observed for essential goods like tomatoes (31.18 per cent), onions (21.84 per cent ), garlic (7.76 per cent ), petrol (5.32 per cent), and wheat flour and LPG (3.66 per cent). However, there were also some notable price increases for cooked daal (1.96 per cent), shirting fabric (1.74 per cent), potatoes (1.46 per cent), beef (1.11per cent), and mutton (1.04 per cent).
Impact across income groups
The decline in SPI was felt across all income groups, with a decrease ranging from -1.02 per cent to -1.17 per cent on a weekly basis. The lowest income group saw the most significant decrease (1.17 per cent), while the highest income group experienced a 1.06 per cent drop.
Year-on-year, however, all income segments faced price increases. The SPI for the lowest income group rose 14.54 per cent , while the highest income group saw a 19.07 per cent increase compared to last year.
Other commodity prices
The price of fertilizer (Sona urea) also saw a slight increase (0.06 per cent) compared to the previous week, though it remains significantly higher (56.44 per cent) than last year. Similarly, the average cement price increased by 0.55 per cent from the previous week and is 8.62 per cent higher than a year ago.
While the recent trend of declining weekly inflation offers some hope, the annual inflation rate remains a challenge for Pakistani households. The ongoing monitoring of prices and efforts to control inflation will be crucial in the coming months.
