Weekly inflation slows, but annual rate jump keeps pressure on govt

By Staff Reporter

ISLAMABAD: Weekly SPI inflation eased to 1.32 percent from 3.63 percent, but a rise in prices from a year earlier on higher food and energy costs adds to the miseries facing common Pakistanis.
SPI remained much higher on an annualised basis at 33.66 percent during the seven-day period ended July 6, data published by the Pakistan Bureau of Statistics (PBS) showed on Thursday.
The PBS data showed an increase in prices of petrol (6.36 percent), diesel (5.06 percent), garlic (5.06 percent), potatoes (2.57 percent), LPG (2.33 percent), vegetable ghee 2.5kg (1.64 percent), cooked daal (1.50 percent), wheat flour (1.46 percent), pulse gram (1.32 percent), tea prepared (1.09 percent) and pulse masoor (1.02 percent). Joint impact of these commodities in overall SPI for the combined group was 0.85 percent.
Analyst Mohammed Sohail at Topline Securities said the increase was expected after massive rise in petrol and diesel prices. This trend will likely cool down in the next few months, once the impact of oil price rise is adjusted.”
Although the increase has been in line with analysts’ expectations, SPI – computed on weekly basis to assess the price movements of essential commodities at shorter intervals – has risen to over a decade high on year-on-year basis.
SPI comprises of 51 essential items collected from 50 markets in 17 cities of the country.
During the week, out of 51 items, prices of 30 (58.82 percent) items increased, 5 (9.81 percent) items decreased, and prices of 16 (31.37 percent) items remained stable.
The YoY trend depicted an increase of 33.66 percent on account of surge in prices of diesel (141.46 percent), petrol (119.61 percent), onions (101.98 percent), pulse masoor (88.16 percent), vegetable ghee 1kg (83.03 percent), cooking oil 5 litre (79.29 percent), mustard oil (77.60 percent), vegetable ghee 2.5 kg (74.87 percent), washing soap (57.43 percent), gents sponge chappal (52.21 percent), pulse gram (51.80 percent), LPG (49.11 percent), tomatoes (44.71 percent), garlic (43.23 percent), and chicken (41.09 percent).
Since April, the coalition government has raised the price of petrol by almost Rs99/litre. The first increase was made on May 25, when the price of the commodity was jacked up by Rs30/litre. That was followed Rs30 hike on June 2, Rs24 hike on June 15, and then another increase of Rs14.85/litre on July 1.
The price of LPG cylinder measuring 11.67kg has jumped to Rs2,526.41 from Rs2,468.82 last week and Rs1,694.27 last year. Similarly, a 5 litre tin of cooking oil was now being sold for Rs2,825.97, up from Rs2,807.84 last week and Rs1,576.23 in the same period last year.
Wheat flour, an essential in all households now costs Rs1,238/20kg bag, compared to Rs1,221.03 last week and Rs1,122.72 last year. On August 16, 2018, it was priced at Rs771.46/20kg, as per PBS data. A kilo pouch of vegetable ghee costs Rs575.79, compared to Rs572.18 last week and Rs314.59 last year. The same commodity was being sold for Rs150.32 during the week ended August 16, 2018.