Higher poultry and sugar prices push weekly inflation slightly up

Pakistan’s short-term inflation rose by 0.24% for the week ending May 8, according to official data. The Sensitive Price Indicator (SPI) showed notable price increases for several essential commodities, including chicken (10.20%), eggs (7.36%), sugar (1.93%), beef (1.50%), and mutton (0.15%).

Conversely, prices of key staples saw a decline, with tomatoes falling by 8.81%, garlic by 5.05%, potatoes by 3.33%, onions by 2.08%, and wheat flour by 0.76%.

Energy prices also edged lower, with liquefied petroleum gas (LPG) dropping 1.66%, petrol 0.83%, and diesel 0.78%. Compared to the same period last year, the SPI registered a 0.80% decrease.

Economic analysts predict headline inflation will gradually rise as the base effect diminishes but expect it to remain within the State Bank of Pakistan’s (SBP) target range of 5%–7% in the foreseeable future.

Broader macroeconomic uncertainties persist, with global trade markets facing tariff tensions and disruptions along Pakistan’s eastern border with India. However, analysts note that an anticipated approval from the International Monetary Fund (IMF) board could provide a boost to Pakistan’s external accounts.