Short-Term Inflation Hits 11.38% as Food Prices Soar in Pakistan

ISLAMABAD: Short-term inflation in Pakistan surged to 11.38 percent year-on-year for the week ending October 15, primarily driven by rising food prices, according to data released by the Pakistan Bureau of Statistics (PBS) on Friday.

During this period, prices of 23 out of 51 monitored essential items increased, accounting for 45.10 percent of the total, while seven items saw a decline of 13.72 percent. The prices of 21 items remained unchanged, indicating a mixed trend in the market. The persistent rise in inflation has been attributed to ongoing increases in petroleum prices, which have remained in double digits for several consecutive weeks.

The Sensitive Price Index (SPI), which measures short-term inflation, experienced a slight week-on-week decline of 0.04 percent, reflecting fluctuations in both food and non-food items. The government’s reluctance to reduce the petroleum levy has led to daily increases in petrol and diesel prices, further exacerbating inflationary pressures and indirectly boosting sales tax revenues through higher prices of goods and services.

Looking ahead, analysts suggest that unless the government takes decisive action to stabilize fuel prices, inflation may continue to pose significant challenges for consumers and the broader economy. Stakeholders are closely monitoring the situation, anticipating potential policy adjustments in response to ongoing economic pressures.