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SPI Inflation- In Islamabad, the Sensitive Price Index (SPI) registered a substantial 42.6% year-on-year increase in the week ending December 21, primarily driven by a historic surge in gas prices and essential food items. This marks the sixth consecutive week with the weekly inflation index exceeding 41%, as reported by the Pakistan Bureau of Statistics. However, on a week-on-week basis, the SPI experienced a marginal decrease of 0.5%.
The SPI, a weekly measure of short-term inflation, monitors the price fluctuations of 51 essential items collected from 50 markets in 17 cities across Pakistan. The year-on-year trend revealed a surge of 42.6% in the SPI, attributed to an unprecedented 1,109% increase in gas rates and the escalating costs of kitchen staples such as wheat, rice, chillies, tomatoes, and sugar.
During the reported week, certain items experienced significant price hikes, including a 93.22% increase in cigarette prices and an 82% rise in chilli powder costs on a year-on-year basis. Additionally, wheat flour prices surged by 78.8%, garlic by 72.5%, broken rice basmati by 62.5%, and rice IRRI-6 and 9 by 59.45%.
Conversely, some items witnessed a decrease in prices on an annualized basis, such as onions (23.92%), mustard oil (4.24%), vegetable ghee 1 kg (1.59%), vegetable ghee 2.5 kg (0.62%), and bananas (0.06%). However, the SPI for the week ending December 21 showed a slight 0.51% decrease compared to the previous week, with notable declines in the prices of potatoes, petrol super, diesel, tomatoes, sugar, wheat flour bag, chicken, rice Basmati broken, and cooking oil 5-litre.
The week also saw notable increases in the prices of eggs, firewood, onions, pulse moong, pulse gram, garlic, rice IRRI-6/9, pulse masoor, LPG, bananas, shirting, and georgette. The Pakistan Bureau of Statistics reported that out of 51 items, prices of 18 increased, nine decreased, and 24 remained stable during the reviewed week. The SPI inflation, which hit a record 48.35% in early May, decelerated to 24.4% in late August before surpassing 40% in mid-November and maintaining that level since.
How does the SPI measure short-term inflation, and what are its key findings in the reported week?
The SPI, a weekly measure tracking 51 essential items, revealed a 42.6% year-on-year increase, with a notable 93.22% rise in cigarette prices and an 82% increase in chilli powder costs. Despite this, on a week-on-week basis, the SPI experienced a marginal 0.5% decrease.
Which items witnessed a decrease in prices, and how did the SPI perform in comparison to the previous week?
On an annualized basis, items like onions, mustard oil, and certain types of vegetable ghee experienced price decreases. The SPI for the week ending December 21 showed a 0.51% decrease compared to the previous week, with declines in various commodity prices, including potatoes, petrol super, diesel, tomatoes, sugar, and more.