SPI stuck at 9.6%, poor suffer more

Pakistan's Sensitive Price Indicator rose 0.49% week-on-week in the week that closed on August 20, 2026, according to the Pakistan Bureau of Statistics (PBS), leaving the year-on-year increase at 9.66%. Price pressure was heavier for lower-income households, with the poorest group recording 9.87% and the second quintile 10.36%, both above the national figure. Higher-income quintiles saw annual increases of between 9.03% and 9.33%.

Onions led the short-term increase, climbing 14.17%, followed by petrol at 3.77% and chicken at 3.35%. Eggs, diesel, tomatoes and potatoes moved lower, with eggs down 5.78% and diesel down 5.15%. Of 51 items checked in 50 markets across 17 cities, 23 rose, 10 fell and 18 were unchanged.

Year-on-year, onions rose 132.52%, tomatoes 93.21% and wheat flour 62.25%, while LPG jumped 51.69%, diesel 33.08% and petrol 27.65%. Electricity charges for Q1 climbed 22.72% over the same period. Market observers linked these energy and food increases to the lingering effects of the US-Iran hostilities and repeated disruptions in the Strait of Hormuz. Growth Securities expects the National CPI for August 2026 to rise 11% year-on-year and 1% month-on-month, citing higher food prices.