Short-term inflation increased by 29.21% year on year for the week ending July 26, primarily due to a strong rise in power and liquefied petroleum petrol prices, according to official figures issued.
Short-term inflation, as assessed by the Sensitive Price Index (SPI), climbed 3.73 percent week on week, the largest increase in the preceding two months.
During the review period, electricity costs were raised by 20.98% and LPG by 4.12%.
Prices for 20 of the 51 products in the SPI basket increased, seven declined, and 24 remained steady from the previous week.
Wheat flour (132.36pc), cigarettes (110.75pc) and Q1 petrol charges (108.38pc) were the commodities with the greatest price increases over the same period a year ago during the week under review.
Tea (97.71%), rice basmati broken (79.60%), rice Irri-6/9 (73.23%), sugar (63.72%), potatoes (62.65%), tomatoes (60.50%), gents sponge chappal (58.05%), gur (57.57%), powdered chilies (55%), and chicken (54.52%).
Prices for powdered chillies (28.98pc), tomatoes (19.71pc), eggs (4.77pc), LPG (4.12pc), garlic (3.09pc), onion (2.58pc), gur (2.18pc), and potatoes (2.09pc) increased the most week on week.
The SPI has somewhat slowed in the recent eight weeks, which can be linked to a little decline in fuel prices. In May, the SPI remained over 45 percent for three weeks after reaching an all-time high of 48.35 percent on May 4.
The rupee’s depreciation, increased petrol prices, an increase in sales tax, and higher energy bills are all major contributors to this inflationary trend.
The IMF forecasts that the average Consumer Price Index (CPI) would be 25.9 percent in FY24, down from 29.6 percent the previous year. It is worth mentioning, however, that it is only predicted to fall below 20% in the fourth quarter of the current fiscal year.
Despite this optimistic prognosis, price pressures are projected to remain significant, owing to the delayed implementation of monetary tightening and higher inflation expectations.