Prices of onions and chickens have risen. (representative)
Islamabad:
Consumer prices rose significantly last week on the back of onions, chicken, eggs, rice, cigarettes and fuel, official data showed on Friday, pushing weekly inflation to more than 40 percent reported for the first time in more than five months.
While week-over-week inflation eased slightly, it remained elevated as bananas, chicken, sugar, cooking oil, gas and cigarettes became more expensive, the Pakistan Bureau of Statistics (PBS) reported.
As a result, short-term inflation, as measured by the Sensitive Price Indicator (SPI), rose to 41.54 percent year-on-year for the week ended Feb. 23, up from 38.42 percent in the previous week.
The price increase is the highest annual increase since the week ending September 8, 2022, when SPI inflation was 42.7 percent. And it was above 40 percent for the first time since Sept. 15, when the score was 40.58 percent.
Prices of onions, chicken, eggs, cigarettes and fuel are rising the most, the Dawn reported.
Week-on-week inflation fell from 2.89 percent a week ago to 2.78 percent. Of the 51 items monitored, the prices of 33 items increased, six items decreased, while those of 12 items remained stable.
The previous week-over-week reading of 2.89 percent was the highest since Oct. 27, when the change in SPI was 4.13 percent, official data showed.
During the week under review, the items whose prices increased the most compared to the same week a year ago were onions 372 percent, cigarettes 164.7 percent, gasoline 108.38 percent, chicken 85.7 percent, diesel 81.36 percent, eggs 75.81 percent. cent, Irri 6/9 rice 75.41 percent, broken basmati rice 74.16 percent, bananas 72.22 percent, washed moong pulse 70.39 percent, and gasoline 69.87 percent.
In contrast, the highest year-on-year decline was recorded in tomato prices -67.93%, chilli powder -7.42% and electricity costs for the lowest income group (-6.64%).
On a weekly basis, the largest change was recorded in the prices of gas 108.4 percent (for the lowest income group), cigarettes 76.45 percent, bananas 6.67 percent, chicken 5.27 percent, sugar 3.37 percent, can of five liter cooking oil 3.07 percent, vegetable ghee 2.5 kg pack 2.79 percent, vegetable ghee 1 kg pack 2.2 percent and prepared tea 1.09 percent.
The products whose prices fell the most compared to last week were onions -13.84 percent, eggs -5.5 percent, tomatoes -4.23 percent, garlic -3.03 percent, LPG -0.81 percent and legumes -0.21 percent. cent.
Meanwhile, headline inflation measured by the consumer price index (CPI) registered at 27.6 percent in January. However, the government has taken strict measures under IMF terms that are likely to further cool the economy and fuel inflation.
The government has already taken a series of measures, including adopting a market-based exchange rate; an increase in fuel and electricity rates; withdrawing subsidies and more taxes to generate revenue to bridge the budget deficit.
According to the Dawn news, officials say the lender is still negotiating with Islamabad over energy sector debt and a possible hike in the key rate, which currently stands at 17 percent.
The country’s economy is in turmoil and in urgent need of external financing. Foreign exchange reserves are down to about $3 billion, barely enough for three weeks worth of imports.
China this week announced a $700 million refinancing received by the State Bank of Pakistan on Friday.
(Except for the headline, this story has not been edited by NewsMadura staff and is being published from a syndicated feed.)
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