KARACHI: A brisk increase in petrol and LPG prices pushed the Sensitive Price Index (SPI) to a 14-week high of 2.83% weekly during the seven-day period ending February 2, 2023, JEE News reported. on Saturday.
On a year-on-year basis, the figure hit a 20-week high of 34.49 percent, with expectations that it will touch 40 percent in the next fortnight following another hike in petroleum prices.
The Pakistan Bureau of Statistics (PBS) released data on Friday that attributed the staggering rise in SPI to staple food items – garlic (17.07%), dal (7.10%), banana (4.75%). , there is an increase in the prices of chicken (4.75%). 4.37%, dal mash (3.93%), lentils (3.91%), mustard oil (3.47%), eggs (3.42%), dal mung (2.33%), sugar (2.32%), vegetable ghee 1 kg (2.13 %) ), and broken basmati rice (2.12%); and non-food items – LPG (17.61%), petrol (16.22%) and diesel (15.30%).
Potato was the only commodity whose price declined by 0.37% per kg.
Zareena, an employee living in People’s Colony area of Karachi, said that she needs 1 kg of wheat flour daily for her family of five. “I am buying it from a nearby store for Rs 120 per kg, while the small rice we buy is now selling for Rs 190 per kg,” she said. Hardly earned Rs 16,000 per month. Days in different houses.”
“And it’s not just food that I’m worried about, with gas load-shedding, I also have to buy LPG now, which is Rs 300 per kg now,” he criticized.
“I can no longer afford to go to the doctor for my health problems, as I can neither afford the doctor’s fees nor the diagnostic fees required for ultrasound and blood work,” Zarina added.
The price of an 11.67 kg LPG cylinder increased by 17.61% and 43.76% year-on-year to Rs 3,396.85 to Rs 508.74 from Rs 2,888.11 last week, and Rs 1,034.05 from Rs 2,362.80 in the same week last year.
Fahad Rauf, head of research at Ismail Iqbal Securities, said the increase in SPI was mainly due to the increase in petrol and LPG prices.
During the week, the government of Pakistan increased the prices of petrol and diesel by Rs 35 per litre. Petrol prices are likely to rise further in the next fortnightly review on February 15, 2023 due to massive currency devaluation and possible hike in taxes.
“Inflationary pressures are expected to intensify as the government is expected to make further adjustments to the opening of the IMF program,” noted Rauf.
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; WOW SPI increased by 1.71, 1.99, 2.17, 2.47 and 3.30% respectively. On an annual basis, for these groups, SPI recorded an increase of 31.33, 32.26, 34.54, 36.04, and 35.47 percent, respectively.
This shows that on a wow basis, the SPI had the biggest impact on those who spend more than Rs 44,175, while the year-on-year impact was greatest on those who spent Rs. The spending power was between Rs 29,518 to Rs 44,175.
PBS data assign different weights to objects in the SPI basket. For the lowest spending power group, the commodities with the highest weightage are milk (17.5449%), electricity (8.3627%), wheat flour (6.1372%), sugar (5.1148%), wood (5.0183%). , including long cloth (4.2221%). %), and vegetable ghee (3.2833%).
Except for electricity and long clothes, the prices of all these items increased.
The SPI was recorded at 227.79 points as against 221.54 points registered last week and 169.37 points during the week ended February 3, 2022.
