Weekly inflation records first drop in five weeks

August 02, 2024 (MLN): Weekly inflation in Pakistan fell for the first time in five weeks amid a fall in electricity charges compared to last week.

The Weekly Sensitive Price Indicator (SPI) for the Combined Group decreased by 0.12% WoW during the week ended August 01, 2024, while the SPI rose 18.41% YoY compared to the corresponding period from last year.

According to data released by the Pakistan Bureau of Statistics (PBS) the Combined Index was at 321.56 compared to 321.95 a week earlier, while the index was recorded at 271.56 a year ago.

During the week, out of 51 items, prices of 24 (47.06%) items increased, 7 (13.72%) items decreased and 20 (39.22%) items remained stable.

On a weekly basis, a major decrease was observed in the prices of Electricity Charges for Q1 (15.80%), Bananas (4.87%), Diesel (3.81%), Petrol (2.23%), and Wheat Flour (0.98%).

The decline came as Prime Minister Shehbaz Sharif gave a Rs50 billion relief package for domestic electricity consumers using up to 200 units per month for three months until October.

On the other hand, a major increase was observed in the prices of Chicken (5.91%), Eggs (1.58%), Cooked Daal (1.05%), Pulse Gram (0.78%), and Cooked Beef (0.53%).

The weekly SPI percentage change by income groups showed that SPI increased across 2 quantiles while it decreased across 3 quantiles, ranging between -1.36% and 0.8%.

The lowest income group experienced a weekly fall of 0.9%, while the highest income group experienced a rise of 0.8%.

On a yearly basis, analysis of SPI change across different income segments showed that SPI increased across all quantiles ranging between 11.48% and 20.85%.

Yearly SPI for the Lowest Income Group increased by 11.48% while the highest income group recorded an increase of 17.56%.

The average price of Sona urea stood at Rs4,759 per 50 kg bag which is 0.46% lower than last week’s price, while 39.64% higher when compared to last year.

Meanwhile, the average Cement price declined to Rs1,454 per 50 kg bag, which is 0.41% lower than the previous week and 27.20% higher than prices last year.

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