Short-term inflation eases to 39.45pc

ISLAMABAD: Short-term inflation has been on a downward trajectory for the second week in a row, decelerating to 39.45 per cent year-on-year in the week ending February 1, official data showed on Friday.

This comes after a consistent 11-week period of inflation above 40pc, which surged from 29pc recorded on Nov 8, 2023. In the first three weeks of January, a persistent rise in inflation was noted before a deceleration at the end of the month. The spike was primarily fuelled by a surge in gas prices, electricity tariffs, and the cost of essential kitchen items.

The SPI witnessed a 0.28pc week-on-week decline as of Feb 1.

The weekly inflation measured by the Sensitive Price Index (SPI) hit a record 48.35pc year-on-year in early May 2023, but then decelerated as low as 24.4pc in late Aug 2023 before surging past 40pc during the week ending on Nov 16, 2023.

The items whose prices saw the decrease week-on-week included tomatoes (18.28pc), eggs (7.77pc), onions (6.99pc), LPG (1.53pc), tea Lipton (1.29pc), potatoes (1.25pc), pulse masoor (0.80pc), cooking oil five- litre (0.36pc) and mustard oil (0.28pc).

The items whose prices increased the most over the previous week included petrol (5.20pc), chicken (1.88pc), diesel (0.95pc), energy saver (0.70pc), bananas (0.68pc), salt powdered (0.55pc), pulse moong (0.34pc), mutton (0.33pc), gur (0.21pc), beef (0.15pc), tea prepared (0.14pc) and georgette (0.10pc).

However, on an annual basis, the items whose prices increased the most included gas charges for Q1 (1108.59pc), cigarettes (92.30pc), tomatoes (90.40pc), chillies powder (81.74pc), wheat flour (61.97pc), gents sponge chappal (58.05pc), sugar (54.79pc), gents sandal (53.37pc), gur (51.67pc), salt powdered (40.97pc), rice IRRI-6/9 (38.79pc) and pulse mash (37.38pc).

In contrast, the prices of onion dropped 15.10pc year-on-year, followed by mustard oil (10.86pc), bananas (10.15pc), vegetable ghee 1kg (3.58pc), LPG (1.63pc) and vegetable ghee 2.5kg (0.80pc).

The short-term, or weekly, inflation is measured by a basket of goods and services called the SPI, which stood at 317.65 compared to 318.55 in the preceding week and 227.79 a year ago.

The index, comprising 51 items collected from 50 markets in 17 cities, is computed weekly to assess the prices of essential commodities and services at shorter intervals. Data showed that the prices of 12 items increased, those of 17 items decreased and those of 22 items remained stable compared to the previous week.