ISLAMABAD: Weekly inflation measured by the Sensitive Price Index (SPI) rose to an unprecedented 48.35 per cent year-on-year (YoY) for the combined income group for the week ending on May 4, the data released on Friday by the Pakistan Bureau of Statistics (PBS) suggested.
Prior to this, the highest-ever percentage of short-term inflation year-on-year was recorded for the week ending on April 19 at 47.23pc.
As for the week ending on May 4, PBS data showed that short-term inflation increased by 1.05pc week-on-week (WoW) as a “major increase” was seen in the prices of chicken, potatoes, powdered milk, pulses, eggs, mutton and bread. Meanwhile, non-food items, including footwear and soaps, also became costlier.
The SPI monitors the prices of 51 essential items based on a survey of 50 markets in 17 cities across the country. During the week under review, the prices of 30 items increased, nine decreased and 12 remained unchanged.
The government has been taking strict measures — hikes in fuel and power tariffs, withdrawal of subsidies, market-based exchange rate, and higher taxation — under the International Monetary Fund (IMF) programme to generate revenue for bridging the fiscal deficit, which may result in slow economic growth and higher inflation in the coming months.
However, the government has yet to unlock the IMF programme despite taking all inflationary and austerity measures.
The increase in the SBP policy rate, sales tax on most items, and 25pc on more than 800 imported food and non-food items will further increase the retail prices of consumer goods.
