Weekly Inflation Falls by 1.06% Following Petroleum Price Cut

Weekly Inflation Falls by 1.06% Following Petroleum Price Cut

Islamabad, May 17, 2024 – Weekly inflation, as measured by the Sensitive Price Indicator (SPI), has witnessed a notable decline of 1.06% following a significant cut in petroleum prices, according to data released by the Pakistan Bureau of Statistics (PBS) on Friday.

The SPI for the week ending May 16, 2024, decreased by 1.06%, reflecting a downward trend in prices across various essential commodities. Major decreases were observed in the prices of tomatoes (31.18%), onions (21.84%), garlic (7.76%), petrol (5.32%), wheat flour, and LPG (liquefied petroleum gas) (3.66% each), diesel (2.79%), rice basmati broken (1.52%), chilies powder (1.31%), pulse masoor (1.08%), and bananas (0.87%).

Conversely, some items witnessed price increases during the week, including cooked daal (1.96%), shirting fabric (1.74%), potatoes (1.46%), beef (1.11%), mutton (1.04%), pulse gram (1.00%), energy saver bulbs, long cloth, and eggs (0.73% each), cooked beef (0.50%), and chicken (0.30%).

Out of 51 items monitored, prices of 20 items increased (39.22%), 16 items decreased (31.37%), and 15 items remained stable (29.41%) during the week.

On a year-on-year basis, the data reveals a mixed trend, with some items witnessing significant increases while others experienced decreases. Notable year-on-year increases include gas charges for Q1 (570.00%), onions (87.82%), chilies powder (69.71%), garlic (61.86%), and tomatoes (35.65%). Conversely, significant decreases were observed in the prices of bananas (39.37%), wheat flour (29.85%), chicken (25.62%), cooking oil (5-liter) (19.65%), vegetable ghee (1 kg and 2.5 kg) (16.42% and 16.07% respectively), mustard oil (12.84%), LPG (11.11%), and eggs (9.32%).

The data reflects the impact of fluctuating commodity prices on consumer inflation, highlighting the importance of monitoring and managing price movements to ensure affordability and stability in the cost of living for citizens.

The decline in weekly inflation following the reduction in petroleum prices signals a positive development, providing relief to consumers and easing inflationary pressures in the economy. However, continued vigilance and effective policy measures are necessary to sustain this downward trajectory and promote economic stability.