Cash-strapped Pakistan's weekly inflation rise to 38.4%

Cash-strapped Pakistan's weekly inflation rise to 38.4%

The rise came on the back of new taxes imposed and an increase in the petroleum prices by the government to fulfil the demand of the International Monetary Fund (IMF) before releasing USD 1.1 billion dollars under an already agreed USD 7 billion deal

FPJ Web DeskUpdated: Saturday, February 18, 2023, 06:23 PM IST
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Cash-strapped Pakistan's weekly inflation rise to 38.4% | Image: Wikipedia (Representative)

The yearly inflation hit a new high of 38.42 per cent in the outgoing week in cash-strapped Pakistan as the trend of the hike in the prices of essential commodities continued to rise, according to a media report on Saturday.

The rise came on the back of new taxes imposed and an increase in the petroleum prices by the government to fulfil the demand of the International Monetary Fund (IMF) before releasing USD 1.1 billion dollars under an already agreed USD 7 billion deal.

Pakistan Bureau of Statistics

According to the latest data from the Pakistan Bureau of Statistics, the Sensitive Price Index (SPI), which is used to measure short-term inflation, rose to 38.42 percent year on year (YoY) in the previous week.

During the outgoing week, the prices of 34 items increased, five were reduced and 12 remained unchanged. The rising prices affected the group with a monthly income from Rs 29,518 to Rs 44,175 the most with an inflation impact of 39.65 per cent.

On a weekly basis, the SPI increased by 2.89 per cent in comparison with the rise of 0.17 per cent in the previous one. In the previous week, the SPI inflation on a yearly basis was recorded at 34.83 per cent.

The increase in the prices is attributed to the hike in fuel prices announced by the government. This, in turn, caused the prices of essential items to jack up.

The SPI is used to gauge the prices of 51 essential items based on a survey of 50 markets in 17 cities in the country.

Rise in prices

A weekly rise was seen in the prices of petrol by 8.82 per cent, five litres of cooking oil by 8.65 per cent, one kg of ghee by 8.02 per cent, chicken meat by 7.49 per cent, and diesel by 6.49 per cent.

A week-on-week (wow) decline was seen in the price of tomatoes by 14.27 per cent. This was followed by a reduction in the price of onions by 13.48 per cent on a weekly basis. Similarly, the price of eggs went down by 4.24 per cent, garlic by 2.1 per cent, and flour by 0.1 per cent on a wow basis.

The price of onions increased by 433.44% over the previous year, which was the biggest YoY basis rise. The price of chicken meat increased by 101.86% year after that, coming in second. On a YoY basis, eggs increased in price by 81.22 percent and diesel by 81.36 percent.

Tomatoes were dropped in price by 65.3%, and chilli powder was cut in price by 7.42% year over year.

Inflation rates

The results for the week under consideration show that the annual inflation rate for the group with incomes up to Rs 17,732 per month was 35.01 percent. The inflation rate for those making between Rs 17,733 and Rs 22,888 per month was 36.53 percent.

Similarly, the inflation rate for those earning between Rs 22,889 and Rs 29,517 per month was 38.43 percent. The inflation rate for those earning between Rs 29,518 and Rs 44,175 per month was 39.65 percent, the highest in terms of impact.

According to The Express Tribune, the rate of inflation for those with a monthly income of more than Rs 44,176 has been 39.41 percent.

Pakistani authorities shocked the public last week by imposing new taxes to raise Rs 170 billion through a mini-budget bill. The unprecedented inflation has hit every household.

With inputs from Agencies.

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