The weekly inflation rate in Pakistan, as measured by the Sensitive Price Indicator (SPI), decreased by 1.10% for the week ending April 25, 2024. This decline marked the second consecutive week of decreasing inflation, reaching a new seven-month low of 26.94% compared to the same week last year. Despite this decline, inflation remained high, still in double digits.
The decrease in inflation was attributed to lower prices of essential food items such as tomatoes, onions, and chicken. Prices of tomatoes dropped by 20.83%, onions by 14.43%, and chicken by 11.64% compared to the previous week. Other commodities like wheat flour, eggs, chilli powder, bananas, LPG, and garlic also saw price reductions of up to 5%.
However, prices of some commodities increased slightly, including potatoes, milk powder, vegetable ghee, mash pulse, sugar, gur, cooked pulse, mutton, and shirting.
Year-on-year SPI trend showed an overall increase of 26.94%, with significant price hikes in gas charges, tomatoes, and onions compared to the same week last year.
Optimus Capital Management predicted that the Consumer Price Index, a benchmark monthly inflation measure, would decrease by 3.6 percentage points to 17% in April 2024. This anticipated decline was attributed to a drop in the food index and electricity prices, along with a favorable base effect.
