Weekly SPI data shows inflation rising more than twice as fast for Pakistan’s lowest expenditure group compared with the highest-income households.
ISLAMABAD, August 8, 2026: Pakistan’s lower-income households are facing a disproportionately heavier burden from rising prices, with the latest weekly inflation data showing that price pressures increase as household expenditure levels decline.
According to the latest Sensitive Price Indicator (SPI) data released by the Pakistan Bureau of Statistics (PBS) on August 7, 2026, households with weekly expenditure of up to Rs17,732 recorded the highest week-on-week increase in inflation among all expenditure groups.
Inflation for the lowest expenditure group increased by 0.43 percent during the week under review.
The second expenditure group, covering households spending between Rs17,733 and Rs22,888 per week, recorded an inflation increase of 0.41 percent.
Meanwhile, inflation for households with weekly expenditure between Rs22,889 and Rs29,517 increased by 0.36 percent, while the group spending between Rs29,518 and Rs44,175 saw inflation rise by 0.34 percent.
In contrast, households with weekly expenditure of more than Rs44,175 experienced an inflation increase of only 0.20 percent.
The figures show that the inflation increase faced by the lowest expenditure group was more than twice that recorded by the highest expenditure group.
Inflation Burden Falls More Heavily on Poorer Households
The latest data highlights the unequal impact of inflation across household expenditure groups.
Lower-income families generally have less flexibility to absorb increases in the prices of essential goods because a greater proportion of their household budgets is allocated to food, transport and other necessities.
The difference in the latest SPI readings is particularly significant. While the lowest expenditure group recorded a 0.43 percent increase, the highest expenditure group saw inflation rise by just 0.20 percent.
This represents a gap of 0.23 percentage points between the two groups.
The disparity suggests that even when overall inflation remains manageable on a weekly basis, its impact can vary considerably depending on household income and spending patterns.
Petroleum Costs Add to Pressure
Petroleum-related costs remain an important concern for household budgets because changes in fuel prices can influence transportation, distribution and the prices of essential commodities.
The government has continued to increase the Petroleum Levy (PL) on High-Speed Diesel (HSD), with the levy rising on each day between August 5 and August 8, according to official petroleum pricing documents.
The HSD Petroleum Levy increased from Rs70.82 per litre on August 5 to Rs74.28 per litre on August 8, representing an increase of Rs3.46 per litre, or nearly 4.9 percent.
The levy stood at Rs72.26 per litre on August 6 and rose further to Rs73.47 per litre on August 7 before reaching Rs74.28 per litre on August 8.
At the same time, the international benchmark used for HSD pricing moved lower.
The Platts Arab Gulf Mean average declined from $151.10 per barrel on August 5 to $146.24 per barrel on August 8.
Underlying HSD Cost Declines
Several underlying HSD pricing components also declined during the four-day period.
The cost-and-freight component fell from Rs273.08 per litre to Rs264.55 per litre, while the ex-refinery/import price declined from Rs288.97 to Rs280.44 per litre.
Despite the reduction in international and import-related costs, the government increased the Petroleum Levy on each of the four pricing dates.
The official pricing data therefore show that part of the reduction in the underlying cost of diesel was offset by the higher levy.
HSD Price Declines but Relief Remains Limited
The price of HSD before the Petroleum Levy, Climate Support Levy and Sales Tax declined from Rs310.04 per litre on August 5 to Rs301.58 per litre on August 8.
The total HSD price, excluding secondary freight, also declined from Rs385.86 to Rs380.86 per litre over the same period.
However, the increase in the Petroleum Levy limited the extent of the reduction passed through to the overall price.
For lower-income households, the implications extend beyond the direct cost of fuel. Higher transportation and distribution costs can feed into the prices of food and other essential goods, potentially placing additional pressure on household budgets.
Poorer Households Remain More Vulnerable
The latest SPI figures indicate that lower-income households have experienced stronger weekly price pressures than higher-income groups.
With inflation increasing by 0.43 percent for the lowest expenditure group compared with 0.20 percent for the highest expenditure group, the data illustrates how the same economic environment can have significantly different consequences for households with different spending capacities.
For families at the bottom of the expenditure scale, even relatively modest increases in food, transport and other essential costs can have a substantial impact on disposable income.
The latest figures therefore highlight the unequal distribution of inflationary pressure in Pakistan, with lower-income groups continuing to face a considerably heavier burden than households at the higher end of the expenditure scale.