Prices of essential items rise by 13.74 percent for income group above Rs35,000

Prices of essential items rise by 13.74 percent for income group above Rs35,000

Islamabad – The prices of essential items have witnessed a significant increase of 13.74 percent for the income group above Rs35,000 for the week ending February 07, 2019, compared to the corresponding week a year ago, according to data released by the Pakistan Bureau of Statistics (PBS) on Monday.

The Sensitive Price Indicator (SPI) based inflation for various income groups has been reported as follows: up to Rs8,000 by 5.77 percent; Rs8,001-Rs12,000 by 6.07 percent; Rs12,001 – Rs18,000 by 6.08 percent; and Rs18,001 – Rs35,000 by 10.11 percent. The cumulative impact of these inflation rates for the period under review stands at 9.24 percent.

The PBS computes the prices of 53 essential items on a weekly basis to determine the Sensitive Price Indicator (SPI) based inflation, providing a snapshot of the changing cost of living for different income segments.

The weekly data highlights that around 12 items experienced an increase in their prices, while 13 items saw a decline, and the prices of 28 items remained unchanged. The net effect of inflation on a weekly basis was recorded at 0.29 percent.

The rise in prices for the higher-income group reflects the challenges faced by consumers in this segment, as they contend with increased costs for essential goods. Inflationary pressures impact various facets of daily life, from household budgets to overall consumer spending patterns.

The data underscores the need for careful monitoring and management of inflationary trends by economic policymakers. Addressing inflation is crucial not only for the well-being of consumers but also for maintaining economic stability and fostering sustainable growth.

Factors contributing to inflation may include changes in global commodity prices, currency fluctuations, and domestic supply and demand dynamics. Policymakers often employ a combination of monetary and fiscal measures to manage inflation and strike a balance between price stability and economic growth.

As Pakistan continues to navigate economic challenges, the government and relevant authorities will likely focus on implementing effective policies to mitigate the impact of inflation on consumers, particularly in higher-income brackets.

Monitoring the SPI and related inflation indicators is essential for understanding the broader economic landscape and making informed policy decisions. As the situation evolves, stakeholders, including policymakers, economists, and consumers, will closely watch for updates on inflation trends and the measures taken to address these challenges and ensure the stability of the economy.