Weekly Inflation Surges To Extreme Level, Pakistan Bureau of Statistics Released Data

BUSINESS(B-Trams):

Pakistan Bureau of Statistics (PBS) data released on Friday attributed the surge in the sensitive price indicator (SPI) to the increase in prices of tomatoes (71.77 percent), wheat flour (42.32 percent), potatoes (11.47 percent), bananas (11.07 percent), tea (7.34%), georgette (2.11%), lawn (1.77%), long cloth (1.58%), pulse mash (1.57%), prepared tea (1.32%), and gur (1.03%). The seven-day period that ended on March 23,

On the other hand, the prices of chicken (8.14%), chilli powder (2.31%), LPG (1.31%), mustard oil (1.29%), garlic (1.19%), pulse gram (1.06%), onions (1.06%), vegetable ghee (0.83%), cooking oil (5 liters) (0.21%), pulse moong (0.17%), pulse masoor (0.15%), and eggs (0.03%) decreased, according to the PBS.

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The SPI was recorded at 250.66 points for the week under review, compared to 246.22 points for the previous week and 170.92 points for the week ending March 24, 2022.

In his weekly note, head of research Fahad Rauf of Ismail Iqbal Securities stated that the SPI experienced a significant increase primarily as a result of a 42 percent increase in the price of a 20kg bag of wheat flour, which has reached an all-time high of Rs2,586.

“The change in the subsidy mechanism is primarily to blame for the rise in wheat prices. He stated, “The government has now shifted from a general subsidy to a targeted subsidy through the Benazir Income Support Programme,” noting that as Ramadan approaches, food costs will continue to rise.

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The price of wheat flour has increased by 120.66% year-over-year and 42.32 percent year-over-year, reaching Rs2,586.37 per kilogram. The price has increased by Rs769.12 from Rs1,817.25 compared to the previous week; The price has gone up by Rs1,414.29 from Rs1,172.08 this year.

According to Pakistan Bureau of Statistics Released Data city-by-city breakdown of wheat flour bag prices, the essential item was the most expensive for Quetta residents at Rs2,889.99 per 20 kilogram bag.

The SPI is created by the PBS by collecting prices for 51 essential products from 50 markets in 17 cities across the nation.

Out of 51 items, prices increased for 26 (50.98 percent), decreased for 12 (23.53 percent), and remained unchanged for 13 (25.49 percent) during the week.

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According to the PBS data, the jump in the prices of onions (228.28 percent), cigarettes (165.88 percent), wheat flour (120.66 percent), gas charges for Q1 (108.38 percent), diesel (102.84%), tea (94.60 percent), bananas (89.84 percent), rice irri-6/9 (81.51 percent), broken basmati rice (81.22 percent), gasoline (81.17 percent), eggs (79.56 percent), pulse moong (68.64 percent), potatoes

The State Bank of Pakistan (SBP) raised its benchmark interest rate by 300 basis points to a 26-year high on March 2, 2023, driven by persistent inflation figures and the stalled IMF program.

On April 4, the monetary policy committee of the central bank is schedule to meet, and it is anticipate that the policy rate will  increased by 100 basis points to 21 percent.

The spread of massive poverty is expect to occur as a result of the rate hikes. For groups spending no more than Rs17,732; Rs17,733-22,888; Rs22,889-29,517; Rs29,518-44,175; in excess of Rs44,175; SPI went up by 43.62, 46.40, 46.31, 46.44, and 48.35% over the previous year.