Pakistan's short-term inflation increased by 3.97%

Pakistan's short-term inflation rose 3.97% for the week ending January 2nd compared to the same period last year, showing a slight decrease from the previous week.

According to data released by the Bureau of Statistics, the Sensitive Price Index (SPI) recorded a 0.26% decrease on a weekly basis.

During the past week, significant price increases were observed in chicken by 10.28%, onions by 4.93%, bananas by 1.68%, diesel by 1.18%, pulse moong by 1.08%, sugar by 0.95%, firewood by 0.55%, vegetable ghee by 0.53%, and petrol by 0.21%.

Conversely, the prices of tomatoes decreased by 13.48%, electricity charges for Q1 by 7.48%, potatoes by 5.59%, pulse gram by 0.34%, eggs, and wheat flour by 0.09%.

Comparing year-on-year prices, the SPI showed a 3.97% increase. Notable price increases included tomatoes by 77.84%, ladies sandals by 75.09%, potatoes by 66.63%, pulse gram by 47.53%, pulse moong by 30.73%, powdered milk by 25.62%, beef by 23.94%, garlic by 17.82%, gas charges for Q1 by 15.52%, cooked daal by 15.10%, shirting by 14.36%, and firewood by 13.18%.

Significant price decreases were seen in wheat flour by 36.12%, onions by 29.95%, chili powder by 20.00%, eggs by 15.78%, electricity charges for Q1 by 13.92%, pulse masoor by 11.24%, rice basmati broken by 8.42%, diesel by 6.39%, bread by 6.01%, pulse mash by 5.98%, and petrol by 5.45%.

It may be mentioned here, the Consumer Price Index (CPI) for December 2024 was recorded at 4.1%, largely attributed to the favorable base effect stemming from high inflation during the previous year.

The average inflation rate for the first half of the fiscal year 2025 is 7.3%, a significant reduction from the 28.8% average recorded in the first half of fiscal year 2024.

IMF has projected country’s inflation to be 10.6% at the end of 2025. The IMF also projects that Pakistan's real GDP growth will be 2.4% in 2025.