Short-term inflation rises to 11.97pc, PBS data shows

Islamabad has seen the short-term inflation rise to 11.97 percent year-on-year in the week ending October 8, according to official data released by the Pakistan Bureau of Statistics (PBS). This increase is primarily driven by higher food prices, particularly wheat flour. The Sensitive Price Index (SPI), which measures short-term inflation, climbed 0.57 percent week-on-week, indicating price fluctuations in both food and non-food items.

Out of the 51 essential items monitored during the week, 20 commodities (39.22 percent) saw price increases, while six items (11.76 percent) experienced price declines, and 25 items (49.02 percent) remained unchanged from the preceding week.

The persistent rise in petroleum prices has been contributing to the inflationary pressures. The government has continued to raise petrol and diesel prices daily, unwilling to ease the petroleum levy. This has not only fueled inflation but also indirectly increased sales tax collections through higher prices of goods and services. Tax analysts have pointed out that higher inflation benefits the government in terms of increased sales tax collection.

Planning Minister Ahsan Iqbal expressed concern over the rising prices of essential commodities, especially wheat flour, during the National Price Monitoring Committee (NPMC) meeting on Thursday. He directed provincial and district administrations to strengthen monitoring of supplies, market arrivals, hoarding, profiteering, and unjustified price increases.

The items that experienced the most significant price increases over the previous week include wheat flour (5.69 percent), chicken (4.93 percent), pulse gram (3.99 percent), petrol, and tomatoes (2.40 percent each), pulse masoor (1.29 percent), prepared tea (1.08 percent), cooked daal (0.98 percent), pulse mash (0.91 percent), and LPG (0.57 percent).

Conversely, bananas (2.81 percent), diesel (1.37 percent), potatoes (0.89 percent), sugar (0.37 percent), gur (0.19 percent), and pulse moong (0.03 percent) saw price declines week-on-week.