Pakistan inflation reaches 11.21% as food and LPG prices rise

Food and LPG prices drive inflation

Short-term inflation in Pakistan remained above 11% for another week, mainly because of rising prices of fresh food and essential items. According to the Pakistan Bureau of Statistics (PBS), inflation increased by 11.21% year-on-year during the week ending November 12.

The Sensitive Price Index (SPI), which measures changes in the prices of essential goods, covers 51 items collected from 50 markets in 17 cities. The index showed a slight weekly decline of 0.46%, even though several important commodities became more expensive.

Out of the 51 items monitored, prices of 19 commodities increased during the week. Meanwhile, nine items became cheaper, while the prices of 23 items remained unchanged.

Short-term inflation has stayed in double digits for several consecutive weeks, mainly because of higher petroleum and diesel prices. Although fuel prices have recently started declining, the increase in Liquefied Petroleum Gas (LPG) prices and food costs has continued to put pressure on inflation.

Tomatoes, eggs and other food items become expensive

Tomatoes recorded the highest weekly price increase of 12.06%, followed by eggs, which became 5.98% more expensive. Potato prices increased by 2.42%, while garlic became 1.76% costlier.

Chicken prices rose by 1.32%, while firewood increased by 1.10%. Wheat flour prices went up by 0.94%, followed by pulse masoor at 0.64%, beef at 0.47% and LPG at 0.30%.

These increases have added to the financial pressure on households already struggling with the rising cost of daily necessities. Food items remain a major reason behind the continued increase in living expenses.

Petrol and diesel prices record a decline

Some essential commodities became cheaper during the week, providing limited relief to consumers. Petrol prices declined by 7.42%, while diesel became 6.10% cheaper.

Onions recorded a price decrease of 1.70%, followed by bananas at 1.03%. Gur prices fell by 0.59%, sugar by 0.43% and powdered milk by 0.36%.

Prices of pulse moong and pulse gram also declined by 0.32% and 0.08%, respectively. However, the reduction in fuel prices has not yet provided enough relief to offset increases in other essential commodities.

The impact of recent petroleum price reductions is expected to become clearer in the next inflation review. Meanwhile, higher energy costs continue to affect the prices of goods and services across the country.

LPG and electricity remain major inflation concerns

Compared with the same period last year, LPG recorded the highest price increase at 111.35%. Tomato prices rose by 78.94%, while electricity charges for the first quarter increased by 52.38%.

Wheat flour became 36.14% more expensive, while diesel prices increased by 30.77% and petrol by 26.23%. Other items that recorded annual increases included onions at 19.67%, powdered chillies at 15.55%, mutton at 14.67%, plain bread at 12.35%, beef at 11.30% and chicken at 10.98%.

However, some commodities became cheaper compared with last year. Potato prices dropped by 36.41%, sugar by 24.54% and eggs by 23.29%.

Salt powder prices declined by 12.51%, while pulse masoor became 7.21% cheaper. Prices of pulse moong, gur and bananas also fell by 6.83%, 6.63% and 3.35%, respectively.

Last week, short-term inflation had reached 12.31% year-on-year, mainly due to expensive LPG and fresh food products. The latest figure shows a decline in the annual inflation rate, although consumers continue to face high prices.

The latest figures show that inflation remains a serious concern for Pakistani households. Lower petrol and diesel prices have provided some relief, but expensive food, LPG and electricity continue to increase living costs.

The biggest concern is that essential items are becoming more expensive, making it difficult for families to manage their monthly budgets. A lasting reduction in inflation will require lower energy costs and more stable prices of everyday commodities.

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