Weekly inflation surges to its highest since April

• SPI inflation has remained above 1% since four out of past five weeks —“which is not a usual phenomenon".
• On a week-on-week basis, the SPI inflation recorded an increase of 1.07%.
• Average prices of 27 essential items, including chicken, cooking oil, bananas, vegetable ghee, eggs, etc., rose during the outgoing week.

KARACHI: The weekly inflation in Pakistan, based on the Sensitive Price Index (SPI), for the week that ended on November 18, registered an increase of 18.34% (year-on-year) for the combined income group — highest since April 2021.

Meanwhile, on a week-on-week basis, the SPI inflation recorded an increase of 1.07% going up from 167.50 points during the week that ended on November 11 to 169.29 points in the week under review.

In a commentary released by Ismail Iqbal Securities, the brokerage house noted that SPI inflation has remained above 1% since four out of past five weeks —“which is not a usual phenomenon.”

“Increase in SPI inflation indicates towards a sharp rise in CPI in coming months,” it said, adding that they expect headline inflation in double digits for November 2021.

According to the provisional figures released by the Pakistan Bureau of Statistics (PBS), the average prices of 27 essential items, including chicken, cooking oil, bananas, vegetable ghee, eggs, etc., rose during the outgoing week.

Prices of 10 items, including tomatoes, sugar, onions and potatoes bag declined. Meanwhile, the rates of 14 essential goods remained unchanged.

The bureau, in its weekly report, said that among food items, the price of chicken increased by a significant 8.26%. Meanwhile, a 5-litre tin of cooking oil, bananas, 2.5kg of vegetable ghee, rice (IRRI-6/9), pulse moong, eggs and tea (prepared) recorded an increase of 4.72%, 4.18%, 3.15%, 1.76%, 1.62%, 1.52%, and 1.21%, respectively.

Among non-food items, prices of washing soap (250 grams) and firewood rose by 3.94% and 1.24%, respectively.

During the week under review, the price of tomatoes dropped by 8.26%, while the price of sugar, onions, gur, and potatoes recorded a decrease of 4.25%, 2.14%, 1.48% and 1.36%.

The SPI for the lowest income group increased by 0.39% compared to the previous week. The index for the group stood at 179.05 points against 178.35 points in the previous week.