KARACHI: Weekly inflation based on the sensitive price index increased by more than 4 percent during the last week, due to a significant increase in electricity prices.
The Pakistan Bureau of Statistics (PBS) reported on Friday that the SPI-based inflation rate increased by 4.13 percent during the week ended October 27 as compared to the previous week. Meanwhile, it increased by 30.68 percent compared to the same period last year.
Data released by PBS showed that the average prices of 21 essential commodities, electricity charges, salt, rice and other commodities increased during the outgoing week.
The prices of 16 items including tomato, onion, lentils and chicken have been reduced. Meanwhile, rates of 14 essential commodities remained unchanged.
Fahad Rauf, an analyst at IIS Research, noted in his commentary that the weekly increase was mainly due to an 89 percent increase in electricity charges.
It may be recalled that the fuel cost adjustment in September was negative Rs 10 per unit. The government decided to postpone the June fuel cost adjustment by Rs 10 per unit, but it was already booked in August inflation numbers, so it was adjusted to September inflation.
Inflation will come in at 25.7 percent compared to the brokerage’s estimate of 23.2 percent in October.
The Composite Income Group Index rose to 213.74 points in the week under review from 205.27 points during the week ended October 20.
The SPI for the lowest income group increased by 4.64% compared to the previous week. The group’s index stood at 220.56 points against 210.78 points last week.
The prices of the following commodities increased on a weekly basis.
Food items:
- Salt Powder —2.57%
- T. Lipton – 1.89%
- Rice IRRI-6/9 – 1.24%
- Garlic – 1.04%
Non-food items:
- Electricity charges for the first quarter – 89.34%
- Energy Saver – 1.57%
The prices of the following essential commodities decreased on a weekly basis.
Food items:
- Tomato – -3.77%
- Onion – -2.97%
- Lentils – -2.50%
- Chicken – -1.86%
- Dal Chana – -1.35%
- Jaggery – -1.09%
Non-food items:
The SPI is calculated on a weekly basis to gauge the price movements of essential commodities to assess the price situation in the country. It includes 51 essential items and prices are collected from 50 markets in 17 cities of the country.