Onion prices soar 125pc as inflation bites

Onion prices recorded the sharpest year-on-year increase among essential commodities during the week ending September 10, contributing significantly to rising living costs across Pakistan.

According to data released by the Pakistan Bureau of Statistics (PBS), the Sensitive Price Indicator (SPI), which tracks prices of essential goods, increased 8.62 per cent compared with the same week last year.

Onions became 125.52pc more expensive year-on-year, while LPG prices rose 55.42pc. Diesel prices increased 45.26pc and petrol became 39.10pc costlier.

Other major annual increases were recorded in wheat flour at 30.18pc, electricity for the first quarter at 25.24pc, powdered chillies at 16.37pc, mutton at 15.92pc, beef at 13.28pc, bananas at 10.51pc, fresh milk at 8.12pc and plain bread at 8.09pc.

However, several essential items became cheaper compared with the same period last year. Potato prices declined 35.21pc, followed by chicken at 24.30pc, sugar at 20.88pc, eggs at 19.95pc and tomatoes at 17.65pc.

On a week-on-week basis, the SPI increased 0.23pc, with petroleum products again driving the rise.

Petrol prices climbed 6.18pc during the week, while diesel rose 5.49pc and LPG increased 4.32pc. Smaller increases were recorded in pulse mash, washing soap, wheat flour, pulse masoor, mustard oil, cooking oil, rice, vegetable ghee and curd.

At the same time, banana prices fell 7.73pc, tomatoes 5.24pc and chicken 4.22pc. Onion prices declined 3.72pc, while potatoes, eggs, garlic and sugar also recorded weekly decreases.

Of the 51 items monitored for the SPI, prices of 14 items increased during the week, while 10 became cheaper. Prices of the remaining 27 items remained unchanged.

Rising global oil prices have also added pressure to domestic costs, increasing transportation and freight expenses and prompting businesses to pass higher costs on to consumers.

The weekly data showed notable differences in flour prices across cities. Karachi recorded the highest price for a 20kg wheat bag, ranging between Rs2,950 and Rs3,200. In Islamabad and Quetta, fine flour was priced at around Rs173 per kilogram.