Pakistan's weekly inflation rises by 0.27% amidst price fluctuations

Pakistan's weekly inflation rose by 0.27% for the week ending February 20, the Pakistan Bureau of Statistics reported. Compared to the same week last year, inflation increased by 1.21%.

The increase was attributed to higher prices for bananas (11.89%), eggs (7.80%), chicken (4.47%), garlic (1.08%), sugar (0.65%), beef (0.52%), mutton (0.22%), pulse masoor (0.15%), and washing soap (0.07%).

Conversely, significant price decreases were noted for tomatoes (2.81%), diesel (1.49%), pulse gram (1.24%), onions (1.16%), potatoes (0.90%), pulse mash (0.60%), LPG (0.58%), petrol (0.36%), basmati rice (0.34%), vegetable ghee (0.32%), and pulse moong (0.30%).

To recall, the monetary policy committee of the State Bank of Pakistan noted in its last statement that core inflation, while continuing to ease, remains elevated. However, high-frequency indicators continued to show gradual improvement in economic activity.

The central bank emphasized the need for a cautious monetary policy stance to ensure price stability, essential for sustainable economic growth. The MPC assessed that the real policy rate needs to remain adequately positive on a forward-looking basis to stabilize inflation within the target range of 5–7%.

Going forward, the inflation outlook is subject to risks from volatile global commodity prices, protectionist policies in major economies, the timing and magnitude of administered energy tariff adjustments, volatile perishable food prices, and any additional measures to meet revenue targets.