Weekly inflation clocks in at 29.42pc YoY

Short-term inflation measured by the Sensitive Price Index (SPI) clocked in at 29.42 per cent year-on-year in the week ending Dec 15, on the back of higher food and fuel prices, data shared by the Pakistan Bureau of Statistics (PBS) showed on Friday.

Last week, it had been recorded at 30.66pc.

PBS data showed that the SPI declined 0.4pc on a week-on-week basis due to a decrease in the prices of tomatoes, potatoes and pulses. The SPI had remained unchanged in the preceding week ending on Dec 8.

Ismail Iqbal Securities attributed the weekly decline to the decrease in tomato and potato prices. “Tomatoes are down by 60pc from their post-flood peak of Rs225/kg.

“Major reason behind fall in tomato prices is arrival of new crop from Sindh. Vegetable prices declined in December due to seasonality,” it said in a note.

The SPI monitors the prices of 51 essential items based on a survey of 50 markets in 17 cities across the country. During the week under review, the prices of 22 items increased, nine decreased and 20 remained unchanged.

Highest YoY rise

• Onions: 468.21pc
• Petrol: 59.27pc
• Eggs: 53.77pc
• Salt: 53.38pc
• Chicken: 52.92pc

Highest YoY decline

• Powdered chili: 40.56pc
• Gur: 3.42pc

Highest WoW rise

• Chicken: 5.89pc
• Onions: 4.45pc
• Soap: 2.3pc
• Flour: 2.17pc
• Basmati rice (broken): 2.04pc

Highest WoW decline

• Tomatoes: 28.71pc
• Potatoes: 16.63pc
• Eggs: 2.64pc
• Vegetable ghee 1kg: 0.91pc
• Pulse Masoor: 0.61pc

This year has seen decades-high inflation due to an increase in international commodity prices as well as the rupee’s depreciation. In addition, this year’s monsoon floods have caused widespread destruction to standing crops which led to a shortage of vegetables. Subsequently, the government had to remove duties on the import of onions and tomatoes from Afghanistan and Iran.

Headline inflation, which had surged to a 49-year-high of 27.3pc in August, had clocked in at 23.8pc in November.

According to Ismail Iqbal Securities, December inflation is expected to come in at 24.3pc.