BUSINESS:During the week ending March 2, The News reported that weekly inflation decreased by 0.30 percent and increased by 41.07 percent year-over-year. Many people were concerned that the rise in food prices would result in widespread food insecurity.
According to data released on Friday by the Pakistan Bureau of Statistics (PBS), the price of onions (13.24 percent), eggs (6.11 percent), garlic (4.24 percent), chicken (2%), LPG (1.84%), gasoline (1.80%), tomatoes (0.59%), pulse gram (0.38%), and potatoes (0.33%) all decreased significantly.
However, bananas (7.34%), long cloth (3.44%), energy saver (3.33%), vegetable ghee (1 kg) (2.48%), jaggery (2.03%), cooked daal (1.87%), tea (1.79%), matchbox (1.66%), lawn printed (1.52%), cooking oil (5 liters) (1.45%), and sugar (1.07%) all experienced significant price increases.
SPI was recorded at 240.57 points for the week under review, compared to 241.29 points for the previous week and 170.53 points for the week ending March 3, 2022.
In his weekly note, Fahad Rauf, head of research at Ismail Iqbal Securities, stated that SPI decreased primarily as a result of lower prices for onion and gasoline. From the February 2023 peak of Rs247/kg, onion prices have decreased by 42%.
In order to spread the effects of a decline in international oil prices, the government decreased the price of gasoline by Rs 5 per liter. As the PKR has lost more ground against the dollar, we anticipate that inflationary pressures will continue overall,” he stated.
In addition, the effects of most recent tax reforms have not yet been seen.
Ramadan is also expected to see an increase in food costs. We anticipate that the CPI (consumer price index) will rise annually by 34-35% in March 2023,” he added.
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Despite this week’s decline in the weekly number, annualized inflation is above 40%. It is reducing Pakistanis’ already meager incomes, making it difficult for them to cover even their daily food costs. Their woes are getting worse due to unemployment.
According to analysts, the recent decisions made by the government to satisfy the International Monetary Fund (IMF) for a meager $1.1 billion bailout tranche would result in massive poverty.
SPI inflation increased by 37.53, 39.56, 40.59, 41.52, and 42.42% annually for groups spending less than Rs17,732, Rs17,733-22,888, Rs22,889-29,517, and above Rs44,175.
According to the PBS data, the rise in the prices of onions (311.17 percent), cigarettes (165.86 percent), gas for Q1 (108.38 percent), diesel (93.82 percent), gasoline (77.89 percent), eggs (77.83 percent), rice irri-6/9 (76.96 percent), broken basmati rice (75.55 percent), pulse moong (73.30 percent), bananas (72.66 percent), chicken (64.70 percent), and tea (64.73 percent) was the
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