Pakistan Weekly Inflation Rises by 0.49% Following Petroleum Price Hikes

Pakistan’s short-term inflation rose by 0.49% week-on-week, pushing annualized SPI to 10.64% due to recent petroleum price hikes. Higher fuel costs directly increased prices for diesel, petrol, LPG, and kitchen staples like garlic and eggs, while produce like bananas and tomatoes saw price drops.

PAKISTAN NEWS

Aagahi Hub

9/19/20262 min read

Gas station fuel dispenser and rising inflation chart representing fuel price hikes in Pakistan on A
Gas station fuel dispenser and rising inflation chart representing fuel price hikes in Pakistan on A

Short-term inflation in Pakistan recorded a fresh increase of 0.49% week-on-week, primarily triggered by a recent surge in petroleum product prices. According to official data released by the Pakistan Bureau of Statistics (PBS), the annualized Sensitive Price Indicator (SPI) reached 10.64%.

The latest spike highlights how energy costs directly impact overall market prices, raising the cost of basic food items and household essentials across the country.

What Is the Sensitive Price Indicator (SPI)?

The Sensitive Price Indicator (SPI) is a key economic metric calculated weekly by the Pakistan Bureau of Statistics. It tracks the price movements of 51 essential commodities across 50 major markets in 17 cities.

Unlike monthly Consumer Price Index (CPI) reports, the weekly SPI acts as an immediate gauge of financial pressure on low- and middle-income families, helping policymakers monitor inflation trends in real time.

Out of 51 essential commodities tracked during the week, 19 items (37.25%) recorded an increase in prices, while 9 items (17.65%) experienced a decline. Meanwhile, the prices of 23 items (45.10%) remained stable and unchanged.

Breakdown of Price Changes

During the week, price changes were recorded across several key categories:

  • Major Price Increases:

    • Diesel: Increased by 7.29%

    • Petrol: Increased by 6.40%

    • LPG (Liquefied Petroleum Gas): Increased by 3.26%

    • Food Staples: Garlic (+1.94%), Eggs (+1.72%), Pulse Gram (+0.80%), and Plain Bread (+0.74%)

  • Items That Became Cheaper:

    • Fresh Produce: Bananas (-6.17%), Tomatoes (-5.66%), and Onions (-4.57%)

    • Poultry & Flour: Chicken (-2.33%) and Wheat Flour (-0.28%)

Year-on-Year (Annual) Price Comparison

Comparing current market rates to the same period in the previous year shows substantial long-term shifts in household expenses:

Over the year, prices for several essential items rose significantly, led by onions with a massive 117.77% increase, followed by LPG (+60.42%), diesel (+54.21%), petrol (+48.00%), and first-quarter electricity rates (+33.54%). On the other hand, a few staple food items became cheaper, with potatoes seeing the largest drop at 35.31%, while sugar and chicken prices fell by 20.95% and 15.26%, respectively.

Why Fuel Price Hikes Drive Broader Inflation

Petroleum and diesel prices serve as fundamental inputs for the entire economy. When fuel costs rise, transportation and logistics expenses increase immediately for farmers, manufacturers, and distributors. These higher shipping charges are quickly passed on to end consumers in retail markets, pushing up prices for everyday grocery items, kitchen staples, and commuter transport services.

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