Weekly Inflation Eases to 11.21pc as Fuel Prices Fall
Weekly inflation in Pakistan eased to 11.21 per cent year on year in the week ending November 12, official data showed on Friday, as cheaper petrol and diesel pulled the weekly index down.
The Pakistan Bureau of Statistics said the Sensitive Price Index, which tracks short-term inflation, fell by 0.46 per cent over the week to 372.90 points, from 374.61 points a week earlier. The index covers 51 essential items, with prices collected from 50 markets in 17 cities.
Of the 51 items tracked, prices rose for 19, fell for nine and stayed the same for 23 during the week.
Weekly inflation: food up, fuel down
Tomatoes rose fastest over the week, up 12.06 per cent, followed by eggs at 5.98 per cent and potatoes at 2.42 per cent. Garlic rose 1.76 per cent, chicken 1.32 per cent and wheat flour 0.94 per cent.
Fuel led the falls. Petrol dropped 7.42 per cent over the week and diesel fell 6.10 per cent after the government cut fuel prices twice during the week. Onions fell 1.70 per cent and bananas 1.03 per cent.
Year-on-year prices still high
The yearly picture stayed harsh for households. LPG cost 111.35 per cent more than a year earlier, tomatoes 78.94 per cent more and first-quarter electricity charges 52.38 per cent more. Wheat flour was up 36.14 per cent on the year, diesel 30.77 per cent and petrol 26.23 per cent.
A few items were cheaper than a year ago. Potato prices fell 36.41 per cent over the year, sugar 24.54 per cent and eggs 23.29 per cent.
Short-term inflation has now stayed in double digits for several weeks in a row. A week earlier, the yearly rate stood at 12.31 per cent, also driven by LPG and perishable food.
Poorer households felt the squeeze most. The index for the lowest income group, those earning up to Rs17,732 a month, rose by 0.03 per cent over the week to 361.12 points, even as the combined index fell. The yearly rate has climbed sharply over the past ten weeks, from 8.35 per cent in the week ending September 3 to 12.31 per cent last week, before easing to 11.21 per cent now.
Fuel cuts yet to feed through
The latest fuel cuts have not shown up in the figures yet. Petrol and diesel prices have been cut on three days in a row, and the third cut, which took petrol to Rs332 a litre and diesel to Rs360 from Friday, will appear in next week’s reading.
Dawn noted that rising energy costs have pushed up food prices as well, a pattern known as cost-push inflation, and that higher prices have also lifted sales tax collection. For households, the weekly fall brings little relief while yearly food and energy costs stay far above last year’s levels.
Petrol fell to Rs332 a litre and diesel to Rs360 from Friday. Gold has fallen by Rs15,800 a tola in two days. Sugar crushing has been delayed to December. Private sector bank loans surged in July to October. The FBR has ordered electronic monitoring of tea packers.
Frequently asked questions
What is weekly inflation in Pakistan?
It is measured by the Sensitive Price Index, published each week by the Pakistan Bureau of Statistics. The index tracks 51 essential items, with prices collected from 50 markets in 17 cities.
What was the weekly inflation rate?
The yearly rate was 11.21 per cent in the week ending November 12, down from 12.31 per cent a week earlier. Over the week itself, the index fell by 0.46 per cent.
Which items rose most in the week?
Tomatoes rose 12.06 per cent, eggs 5.98 per cent and potatoes 2.42 per cent. Garlic, chicken and wheat flour also became dearer.
Which items became cheaper?
Petrol fell 7.42 per cent and diesel 6.10 per cent over the week after two fuel price cuts. Onions, bananas, gur and sugar also fell.
Why is the yearly rate still high?
LPG cost 111.35 per cent more than a year ago, tomatoes 78.94 per cent more and first-quarter electricity charges 52.38 per cent more. The latest fuel cuts had not yet entered the figures.
