In Karachi, Pakistan, the inflation rate reached a nine-week peak at 1.36% for the week ending March 14, 2024, driven by notable increases in energy and food prices at the beginning of Ramazan, causing a strain on the purchasing power of average consumers.
Data from the Pakistan Bureau of Statistics (PBS) revealed that the weekly inflation, measured by the Sensitive Price Indicator (SPI), continued its upward trend for the fourth consecutive week, surging by 32.89% compared to the same week last year.
The spike in the SPI was primarily attributed to the significant rise in tomato prices, soaring by 21.96% to Rs166.58 per kg, and bananas, increasing by 21.76% to Rs187.22 per dozen. Egg prices also witnessed a notable increase of 7.15% to Rs277.11 per dozen. Other commodities, including onion and liquefied petroleum gas (LPG), also experienced price hikes during the week under review.
Of the 51 items covered by the SPI basket, prices of 18 items increased, while prices of 10 items decreased, and 23 items remained unchanged during the week.
Optimus Capital Management noted that the 1.36% surge in weekly inflation was mainly driven by electricity charges, tomatoes, bananas, and onions.
To stabilize prices in local markets, the government temporarily halted exports of onion and banana during Ramazan until April 15. However, exporters anticipated a gradual decline in onion prices in the coming days, while the impact of the banana export suspension on local prices was expected to be minimal due to limited export quantities.
The monthly inflation reading, measured by the Consumer Price Index, is expected to decelerate to 20-21% in March, primarily due to a high base effect.
