Weekly inflation in Pakistan falls 0.35%: PBS

• Some consumer objects saw price increases.
• Inflation of SPI rarely publishes 1.2%.
• The onions saw a massive drop in prices 67.67% on a yearly basis.
  

Karachi: The Sensitive Price Index (SPI), which measures short -term inflation in Pakistan, recorded a 0.35% reduction in inflation during the week ending March 20, according to Pakistan Statistics Office (PBS).

The news They said that the sharp drop in vegetable prices was the main cause behind the dip. Tomatoes fell more to -7.08%, followed by onions (-6.07%), garlic (-5.59%), eggs (-4.64%) and potatoes (-2.5%). There were also small drops at needs such as sugar (-0.87%) and Lipton tea (-1.3%). An important domestic source of fuel, firewood, decreased by 0.6%.

On the other hand, some consumer objects saw price increases, such as long fabric (+1.23%), printed lawn fabric (+2.9%), LPG (+1.53%) and bananas (+1.45%). Daily needs, including bread (+0.55%), beef (+0.25%) and curd (+0.24%), saw all small price increases.

Spi inflation, on an annual basis, has rarely published a decrease of 1.2%, reflecting lower prices for basic staples. The onions saw a huge drop in prices by 67.67%compared to the same period last year, while wheat flour (-35.58%), tomatoes (-29.45%) and electricity charges for the lowest eating arm (-18.92%) also contributed. Fuel prices also decreased, with diesel (-9.37%) and gasoline (-8.55%), the year’s (Yoy) registration is reduced.

Despite the total dip, several basic goods remained significantly more expensive than a year ago. Ladies’ sandals increased by 75.09%, powder milk increased by 25.75%and beef prices increased by 21.01%. Chicken (+18.23%), sugar (+18.65%) and vegetable (+16.13%) also showed remarkable annual price increases, highlighting continued inflationary pressures in basic food categories.

The inflationary impacts vary between income sectors, with lower income households seeing a higher decrease in prices than richer groups. The lowest consumption of a Pedmorian recorded a 1.84% decline on an annual basis, while the highest quintility saw a much lower 0.49% drop, suggesting that lower income households may benefit more than recent price adjustments.

While there are still inflationary pressures, Pakistan has managed to control inflation. According to estimates by the Topline Securities Price Index (CPI) for March 2025, it is expected to be reduced to a low three decades, recording between 0.5 % and 1.0 % annually, with a monthly increase of 0.9 %. This would bring the average inflation for the first nine months of FY25 to 5.38%, a sharp drop of 27.06% recorded in the same period last year.