Inflation in Pakistan shows marginal weekly increase

Pakistan's short-term inflation rose by 0.22% for the week ending on March 13, 2025.

The most significant price hikes were observed in essential commodities, including tomatoes (36.43%), chicken (6.40%), bananas (6.05%), sugar (5.69%), LPG (1.44%), bread (1.13%), and beef (0.57%).

Conversely, there were notable price declines in onions (16.71%), potatoes (6.59%), garlic (5.29%), pulse gram (1.91%), eggs (1.55%), and pulse mash (0.49%).

The year-over-year trend indicates a 1.97% decrease in the Sensitive Price Indicator (SPI).

In February 2025, inflation rates fell below expectations, primarily due to a decline in food and energy prices. However, risks remain due to the inherent volatility of these prices, potentially impacting the current downward trend in inflation.

Core inflation, meanwhile, persists at elevated levels, suggesting that any uptick in food and energy prices may lead to an increase in overall inflation.

According to the central bank's monetary policy statement, the unexpected drop in February's inflation was largely attributed to lower food and energy prices.

The committee noted the risks posed by the volatility in these prices and emphasized that core inflation continues to remain stubbornly high. Consequently, any rise in food and energy prices could reverse the declining inflation trend.