The highest year-on-year increase in inflation at 37.67%, massively increased petroleum prices contributed to food inflation, SPI
The Sensitive Price Index (SPI) has measured inflation in the country to be increased by 3.68 percent from the previous week, the highest ever in a week.
According to the data from the Pakistan Bureau of Statistics (PBS) the main reason for increased inflation has been caused by the highest ever food prices. On June 17, SPI recorded the second ever highest increase in inflation at 3.38 percent.
During the week under review, SPI recorded the highest ever year-on-year increase of 37.67 percent. The massive increase in petrol and diesel prices has also contributed in food inflation. Whereas due to the damages caused to crops during the ongoing rain spells throughout the country would cause the food prices to increase further.
Increased electricity tariffs have been another cause of increasing inflation. The government has already announced of revising sales tax on petroleum products as well as it would increase the petroleum development levy in phases causing an increase in the fuel prices.
The budget documents for fiscal year 2022-2023 have shown inflation target at 11.5 percent whereas the Federal Board of Revenue has projected the value at 12.8 percent. On the other hand economists have claimed that the inflation during the ongoing year would stay in range of 25-30 percent.
The federal government has disbanded the dedicated Price Monitoring Committee, led by the finance minister and provincial chief secretaries, after coming into power.
According to the data of PBS the prices of 30 essential food items increased in the current week compared with the previous one.
The PBS data shows that the price of tomatoes went up by 17.53 percent, pulse masoor by 4.18 percent, pulse mash by 2.87 percent, pulse gram by 2.46 percent, pulse moong by 2.02 percent, vegetable ghee by 2.5 Kg 1.80 percent, garlic by 1.69 percent and rice basmati broken by 1.21 percent. Among the non-food items, the price of electricity was up by 26.11 percent, LPG by 7.02 percent, washing soap by 2.34 percent and energy saver by 1.03 percent.
For the lowest income group, i.e., the people earning less than Rs17.732 monthly, the SPI increased by 3.27 percent whereas for the people earning above Rs44,175 SPI increased by 3.54 percent.
The yearly increase in the price of diesel was 101.53 percent, pulse masoor 99.14 percent, petrol 94.15 percent, chicken 75.65 percent, cooking oil 5 liter 74.81 percent, vegetable ghee 1 Kg 72.90 percent, mustard oil 72.45 percent, vegetable ghee 2.5 Kg 70.51 percent, onions 64.18 percent, washing soap 62.46 percent, pulse gram 55.28 percent, electricity 52.61 percent, gents sponge chappal 52.21 percent, garlic 45.18 percent and pulse mash 38.35 percent.
