Short-term inflation surges on costly food, energy

Dawn reported that short-term inflation, measured by the Sensitive Price Index (SPI), climbed 11.92 per cent year-on-year for the week ending Sept 24, driven mainly by higher food prices. Weekly figures from the Pakistan Bureau of Statistics showed the index up 0.99 per cent over the previous week. The index has now risen for 74 consecutive weeks.

Persistent increases in petroleum prices have pushed short-term inflation into double digits over recent weeks. The government is keeping the petroleum development levy in place and raising petrol and diesel rates almost daily, with only minor cuts in between. Higher energy costs are also feeding into sales tax collection, while unusually high transport costs have lifted the prices of onions, tomatoes and other vegetables.

Electricity for Q1 recorded the largest weekly rise at 18.76 per cent, with eggs and garlic also becoming more expensive. On an annual basis, onions rose 115.98 per cent and LPG 63.97 per cent, while potatoes fell 39.21 per cent. Of the 51 items tracked across 50 markets in 17 cities, 20 prices rose, 10 fell and 21 remained stable week on week.