KARACHI: Increase in prices of chicken, rice and wheat flour pushed the weekly inflation to 1.09 percent during the seven-day period ending January 5 (Thursday).
Data released by the Pakistan Bureau of Statistics (PBS) on Friday showed that annual inflation rose by 30.60 percent, adding to the woes of the low and middle income groups, which soon May lose their ability to spend even on essential items.
The PBS data showed a rise in chicken (16.09%), broken rice basmati (5.16%), wheat flour (4.87%), rice sensitive price index (SPI) increases. What is attributed to Banana (2.97%), Onion (2.65%), Roti (1.24%), Salt Powder (1.07%) and Moong Dal (1.02%).
On the other hand, the prices of potato (4.61%), egg (1.31%), tomato (1.17%), LPG (0.85%), vegetable ghee 2.5 kg (0.71%), cooking oil 5 liter decreased. (0.32%), sugar (0.24%), vegetable ghee 1kg (0.11%) and lentils (0.05%).
Commenting on the weekly data, Fahad Rauf, analyst at Ismail Iqbal Securities, said the increase in SPI was mainly due to increase in chicken and wheat prices.
Due to the shortage of soybean feed, the price of chicken is increasing, while the price of wheat has increased due to the difference in the support price between Sindh and Punjab, due to which there has also been a shortage of grain in wheat flour mills. .
“We estimate January 2023 CPI (Consumer Price Index) at 24.5% versus 27% in December 2022. We have assumed another Rs 100 per kg increase in chicken prices,” noted Rauf.
The price of a 20 kg wheat flour bag has been on an upward trend since the week ended November 24, 2022 when it was Rs 1,509.83 per bag. In subsequent weeks, the price of 20 kg wheat flour increased by an average of Rs 187.79 per 20 kg bag to Rs 1,697.62 per bag.
During the same week last year, the price was 1,167.96/20 kg bag, according to PBS data. This shows that the average price of a 20 kg bag of wheat flour for consumers has increased by Rs.529.66.
However, on a year-on-year basis, it shows a 45.35% increase in the price of essential commodities.
PBS data assign different weights to items in the SPI basket.
For the lowest spending power group, the weight of wheat flour is 6.1372%, while for the combined group the weight is 3.9725%.
Other commodities with the highest weightage for the lowest quintile are milk (17.5449%), electricity (8.3627%), sugar (5.1148%), wood (5.0183%), long cloth (4.2221%) and vegetable ghee (3.2833%). ) Included.
Prices of milk and wood increased among them. Prices of sugar and vegetable ghee decreased while electricity and long cloth prices remained unchanged.
17,732 for groups spending up to Rs. 17,733-22,888 rupees; 22,889-29,517 rupees; 29,518-44,175 rupees; and above Rs.44,175; YoY SPI increased by 29.60, 30.06, 31.88, 32.92 and 30.59% respectively.
The SPI was recorded at 219.56 points against 217.20 points registered last week and 168.12 points during the week ended January 1, 2022.
