HomeBlogsBusinessInflation Surge Deepens as Pakistan’s Annual Rate Hits 11.92%

Inflation Surge Deepens as Pakistan’s Annual Rate Hits 11.92%

Inflation in Pakistan accelerated further during the week ended September 24, with the latest official data showing a 0.99 percent week-on-week increase in the Sensitive Price Indicator (SPI). On a year-on-year basis, the inflation rate reached 11.92 percent, up from the previous level of 10.64 percent, highlighting continued pressure on household budgets.

Inflation in Pakistan
Inflation in Pakistan

Inflation in Pakistan rises 0.99% weekly

According to the Pakistan Bureau of Statistics (PBS), the weekly SPI tracks price movements of 51 essential commodities collected from 50 markets in 17 cities. During the latest week, prices of 20 items increased, 10 declined, while prices of 21 commodities remained unchanged.

The latest increase indicates that short-term price pressures have strengthened after the SPI had risen by 0.49 percent during the previous week ended September 17.

Electricity emerges as major pressure point

Electricity recorded the most prominent weekly increase, with prices for the first consumption group rising by 18.76 percent. The sharp movement in electricity costs was followed by increases in several household essentials.

Egg prices increased by 2.02 percent, while garlic rose 1.57 percent and LPG prices climbed 1.55 percent. Masoor dal increased by 0.75 percent, chicken by 0.72 percent and washing soap by 0.59 percent.

Smaller increases were recorded in gram dal, mutton, beef, curd, milk and wheat flour. The PBS data shows that the latest inflationary pressure was therefore spread across both food and non-food categories.

Inflation in Pakistan
Inflation in Pakistan

Food prices show mixed movement

Not all essential commodities became more expensive during the week. Tomato prices dropped by 13.45 percent, while potatoes fell 8.33 percent and bananas declined 5.66 percent.

Onion prices decreased by 2.42 percent, while powdered salt fell 0.90 percent. Petrol prices declined by 0.34 percent and high-speed diesel by 1.57 percent. Sugar also recorded a modest decline of 0.23 percent.

Despite these weekly reductions, the year-on-year picture remains uneven. PBS data shows that onion prices were 115.98 percent higher than a year earlier, while LPG increased 63.97 percent and first-quintile electricity prices rose 58.59 percent. Diesel and petrol were also substantially higher year-on-year.

Inflation varies across income groups

The impact of Inflation in Pakistan differs considerably among household income groups.

For households earning up to Rs17,732 per month, year-on-year inflation stood at 9.69 percent. For the Rs17,733–Rs22,888 income group, the rate reached 11.37 percent.

Households earning between Rs22,889 and Rs29,517 recorded an inflation rate of 9.85 percent, while those earning Rs29,518–Rs44,175 faced a rate of 10.20 percent.

The highest annual rate among the reported income groups was recorded for households earning Rs44,176 or more, where inflation reached 12.31 percent.

Yearly price pressures remain significant

The latest PBS figures underline the continuing pressure on consumers despite declines in several food items during the week.

The year-on-year increase was particularly notable for onions, LPG, electricity, diesel, petrol and wheat flour. At the same time, some commodities—including potatoes, sugar, tomatoes and eggs—were cheaper than they were a year earlier.

With the weekly SPI covering a defined basket of essential commodities, its movement provides an indication of short-term price pressures rather than the broader monthly Consumer Price Index. PBS separately publishes CPI data as a monthly measure of consumer prices.

The latest figures therefore present a mixed picture: weekly inflation accelerated, while individual commodities moved in both directions. For households, however, the continued rise in essential costs remains an important factor in monthly spending patterns.See More on Pulse Paksitan

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