KARACHI: Weekly inflation based on the Sensitive Price Index (SPI) rate declined sharply for the third consecutive week, recording a decline of 8.11 percent due to the reduction of Fuel Charge Adjustment (FCA).
The Pakistan Bureau of Statistics (PBS) reported on Friday that the SPI-based inflation rate increased by 29.28 percent during the week ended September 22 as compared to the previous week.
Topline Securities attributed the 8.1 percent weekly decline to a reduction in power fuel charges. “To recall, the government had deferred Rs 9.9 per unit FCA for the month of June for consumers consuming up to 300 units,” the report added.
On the other hand, wheat flour prices continue to increase due to the effects of floods and increase in support prices of wheat for the upcoming crops.
The brokerage house estimates September 2022 inflation at 0.1% month-on-month and 24.7% year-on-year on a consumer price index basis, where higher food inflation will be largely offset by electricity FCA relief.
Prices of perishable commodities fell due to immediate measures taken by the government to mitigate the adverse effects of supply disruption caused by floods, which destroyed standing crops.
It was the third week in a row that the inflation rate fell, largely due to measures taken by the government to prevent supply chain disruptions during the floods that sent commodity prices skyrocketing. were
Data released by the Pakistan Bureau of Statistics (PBS) showed that the average prices of 10 essential commodities, tomato, banana, garlic and other commodities, decreased during the outgoing week.
Prices of 26 items including wheat flour and tea meat have increased. Meanwhile, rates of 15 essential commodities remained unchanged.
The Combined Income Group Index rose to 205.98 points in the week under review from 224.98 points in the week ended September 15.
The SPI for the lowest income group fell by 8.11% compared to the previous week. The group’s index stood at 203.21 points against 221.14 points last week.
The prices of the following essential commodities decreased on a weekly basis.
Food items:
- Tomato – -8.15%
- Banana – -1.90%
- Garlic (Garlic) – -1.31%
- Plus lentils – -0.99%
- Cooking oil 5 liter ton — -0.78%
- Onion – -0.46%
- Vegetable ghee 2.5 kg – -0.34%
Non-food items:
- Electricity charges for the first quarter — -64.23%
- LPG – -3.82%
- The prices of the following commodities increased on a weekly basis.
Food items:
- Wheat Flour – 22.47%
- T. Lipton – 6.42%
- Chicken – 4.52%
- Plus Gram – 2.54%
- Bread – 2.36%
- Basmati Rice Broken – 1.51%
- Potatoes – 1.45%
Non-food items:
- Cigarettes – 1.82%
Torrential rains and floods have put a lot of pressure on people as they are deprived of basic necessities amid disruptions in agricultural production and supply chains.
However, the reason for the improvement in prices of vegetables, especially onions and tomatoes, is due to timely imports from Iran and Afghanistan.
SPI is calculated on a weekly basis to gauge the price movements of essential commodities to assess the price situation in the country. It includes 51 essential items and prices are collected from 50 markets in 17 cities of the country.
