Pakistan weekly inflation drops 0.67% on falling petrol, diesel prices

Inflation Pakistan

Islamabad, January 2, 2026 – Pakistan weekly inflation, measured by the Sensitive Price Indicator (SPI), eased by 0.67% during the week ending January 1, 2026, largely due to a drop in petrol and diesel prices, according to data released by the Pakistan Bureau of Statistics (PBS).

The SPI decline reflects a fall in key commodity prices, including onions (-11.84%), potatoes (-10.21%), eggs (-6.25%), petrol (-3.89%), diesel (-3.20%), sugar (-2.88%), pulse gram (-2.32%), pulse masoor (-1.80%), LPG (-1.31%), gur (-1.12%), and pulse mash (-1.05%).

Conversely, prices of certain items increased, with chicken (+2.37%), wheat flour (+1.88%), tomatoes (+1.72%), bananas (+1.13%), garlic (+1.11%), rice basmati broken (+0.96%), rice IRRI-6/9 (+0.75%), vegetable ghee 2.5 kg (+0.44%), and firewood (+0.01%) showing upward movement.

During the week, of 51 monitored items, 12 items (23.53%) recorded price increases, 13 items (25.49%) saw price decreases, while 26 items (50.98%) remained stable, highlighting mixed price trends across essential commodities.

On a year-on-year basis, inflation increased 2.41%, with significant rises in gas charges for Q1 (+29.85%), wheat flour (+24.98%), beef (+12.95%), sugar (+11.90%), bananas (+10.63%), gur (+10.57%), firewood (+10.43%), chili powder (+10.31%), powdered milk (+9.51%), lawn printed fabric (+8.29%), shirting (+8.07%), and mutton (+7.43%).

Meanwhile, notable declines were recorded in tomatoes (-70.52%), potatoes (-52.25%), onions (-40.54%), garlic (-37.35%), pulse gram (-31.06%), tea Lipton (-17.79%), pulse mash (-14.01%), pulse masoor (-8.38%), LPG (-2.23%), and diesel (-0.30%).

The latest data indicate a short-term relief in weekly prices, primarily driven by falling energy costs, though annual inflationary pressures persist across essential food and energy items in Pakistan.