Short-term inflation spikes to record 46.65pc


Short-term inflation measured by the Sensitive Price Index (SPI) hit an all-time high of 46.65 per cent year-on-year (YoY) for the week ending on March 22, driven mainly by a major increase in food prices, data shared by the Pakistan Bureau of Statistics (PBS) showed on Friday.

Last week, short-term inflation was recorded at 45.64pc year-on-year.

On a week-on-week basis, short-term inflation increased by 1.80pc as tomatoes, potatoes and wheat flour became costlier.

The SPI monitors the prices of 51 essential items based on a survey of 50 markets in 17 cities across the country. During the week under review, the prices of 26 items increased, prices of 12 decreased and prices of 13 remained stable.

Highest YoY rise

Onions: 228.28pc
Cigarettes: 165.88pc
Wheat flour: 120.66pc
Gas Charges for Q1: 108.38pc
Diesel: 102.84pc
Highest YoY fall

Chillies powdered: 9.56pc
Highest WoW rise

Tomatoes: 71.77pc
Wheat flour: 42.32pc
Potatoes: 11.47pc
Bananas: 11.07pc
Tea Lipton: 7.34pc
Highest WoW fall

Chicken: 8.14pc
Chillies powdered: 2.31pc
Mustard oil: 1.19pc
Garlic: 1.19pc
Pulse gram: 1.06pc
Last month, prices rose at the fastest pace ever in the country’s history, according to available data, with food, beverage and transport costs driving inflation to a point where analysts fear “families will have to make choices and sacrifices”.

Monthly inflation, measured by a basket of products called the Consumer Price Index (CPI), jumped to 31.6pc in February year-on-year. This was the highest annual rate since available data, i.e. July 1965, according to the research firm Arif Habib Ltd.

The government is undertaking belt-tightening measures to increase revenue through taxes, and has allowed the rupee to depreciate as it thrashes out a deal with the International Monetary Fund (IMF) to secure more than $1 billion in funding.