SPI Inflation Rises Amid Food and Energy Surge

Short-term inflation, as measured by the Sensitive Price Index (SPI), increased by 0.97% for the week ending March 26, according to data published by the Pakistan Bureau of Statistics. The rise reflects continued pressure on household expenditures, primarily driven by higher food and energy prices.

The weekly increase was largely attributable to significant price escalations in perishable food items and alternative fuels. Notably, onion prices rose by 18%, tomatoes by 11.38%, and Liquefied Petroleum Gas (LPG) by 10.05%. Additional upward movements were observed in poultry and staple commodities, with chicken prices increasing by 8.70% and potatoes by 8.11%.

Energy-related costs also contributed to inflationary pressure, with electricity charges for the lowest consumption slab (Q1) increasing by 6.11%. Other food items such as eggs, garlic, mutton, and beef registered moderate price increases, indicating broad-based cost escalation across essential consumption categories.

Conversely, certain commodities provided limited relief. Prices of bananas declined by 4.50%, wheat flour by 1%, and sugar by 0.29%, alongside marginal reductions in pulses and rice varieties.

A detailed breakdown of the SPI basket indicates mixed price movements: out of 51 tracked commodities, 23 recorded increases, six declined, and 22 remained stable, highlighting uneven but widespread inflationary trends.

On a year-on-year basis, SPI inflation rose by 8.24%, reflecting persistent cost pressures. The most significant annual increases were recorded in LPG (34.73%), diesel (29.94%), and gas tariffs for lower consumption slabs (29.85%). Additional notable increases were observed in wheat flour (25.76%), petrol (25.75%), and onions (25.07%).

Despite these upward trends, certain items exhibited substantial annual price declines. Potato prices decreased by 45.71%, while pulse gram declined by 17.54%. Other commodities, including eggs, garlic, chicken, and sugar, also registered notable reductions compared to the previous year.

Income-segment analysis indicates that inflationary pressures remain pervasive across all household categories. The lowest-income group (earning up to Rs17,732 per month) experienced a 0.97% weekly increase in SPI, while other income brackets recorded increases ranging between 0.79% and 1.09%, demonstrating that inflation continues to impact consumers across the economic spectrum.