Pakistan’s weekly inflation rises amid higher poultry, sugar prices

Pakistan’s weekly inflation rose by 1.03% for the period ending May 15, driven largely by increased prices for poultry and sugar, official data showed Thursday.

The Sensitive Price Indicator (SPI) recorded a 15.95% jump in chicken prices, while eggs climbed 8.34% and sugar rose 1.97%. Other notable increases included long cloth (1.74%), powdered milk (1.59%), mutton (0.62%), and cooked beef (0.49%).

Conversely, prices fell for tomatoes (down 5.20%), garlic (3.45%), onions (2.57%), potatoes (1.93%), liquefied petroleum gas (0.90%), and basmati rice (0.54%).

Year-over-year, the SPI showed an increase of 1.29% compared to the same week in 2024.

Earlier this month, Pakistan’s central bank lowered its benchmark interest rate by 100 basis points to 11%, citing declining inflation and a favorable global commodity trend. Analysts say the accelerated pace of disinflation has been supported by a drop in food inflation and the absence of anticipated gas tariff adjustments.

Despite easing price pressures, the central bank warned of volatility in wheat and other food items. However, officials expect the wheat crop to yield 29 million tons this year, a projection that could mitigate some of these concerns.