Food prices remain high despite lower oil prices

ISLAMABAD-Despite lower oil prices, inflation based on the Sensitive Price Index (SPI) recorded an increase of 0.29% in the week ended October 6, as food prices fell. rise.

SPI-based inflation rose 0.29% in the week ended Oct. 6 from the previous week, according to the latest data from the Pakistan Bureau of Statistics (PBS). The SPI was recorded at 205.73 points during the week ended October 6 against 205.13 points during the week ended September 29. On an annual basis, weekly inflation rose to 29.44%.

According to PBS data, during the week, out of 51 items, the prices of 17 (33.33%) items increased, 14 (27.45%) items decreased and 20 (39.22%) items were remained stable.

Weekly inflation rose despite lower oil prices. Economic experts are of the opinion that inflation may decrease in the coming month mainly due to the reduction in oil prices and the appreciation of the currency. The federal government had announced that it would reduce the prices of petroleum products by up to 12.63 rupees per litre. Meanwhile, the local currency has been appreciating continuously for the past few days. The value of the US dollar fell to around Rs220 on Friday, which had risen to Rs240. Finance Minister Ishaq Dar has pledged to bring it below Rs200 by the end of the current month. The appreciation of the currency would help to reduce the prices of foodstuffs as well as petroleum products.

The SPI for the current week ended October 06, 2022 recorded an increase of 0.29%. Increases were observed in food prices, tomatoes (27.40%), onions (10.22%), bananas (2.24%) and powdered milk (1.18%).

On the other hand, a decrease was observed in the prices of gasoline (5.29%), pulses (5.16%), potatoes and diesel (4.87%), LPG ( 4.49%), pulses (3.06%), pulse puree (1.67%), moong pulses (0.98%), garlic (0.73%), chicken (0.52% ), mustard oil (0.45%), wheat flour (0.36%), cooking oil 5 liters (0.22%) and vegetable ghee 2.5 kg (0.08 percent).

The prices of the following items remained unchanged: Bone-in Beef (Medium Quality), Vegetable Ghee, Powdered Salt, Powdered Chilies, Lipton Yellow Label Tea, Medium Hotel Cooked Daal, Cigarette Capstan, Gul Ahmed Long Cloth/ Al Karam, shirt (medium quality), electricity costs, gas costs up to 3.3719 MMBTU, 14 watt philips energy saver, box of matches and telephone call costs.

According to PBS data, the sensitive price indicator for the lowest consumer group up to Rs 17,732 saw an increase of 1.22% and rose to 211.73 points this week from 209.18 points. last week. Meanwhile, the SPI for consumer groups of Rs17,732-22,888; Rs22,889-29,517; Rs29,518-44,175 and also rose by 1.05%, 0.75% and 0.51% respectively. Meanwhile, for the income group above Rs 44,175, weekly inflation recorded a slight drop of 0.08%.

The year-on-year trend shows an increase of 29.44%, tomatoes (305.60%), onions (167.80%), diesel (92.08%), gasoline (76.07%) , pulses (70.02%), masoor pulses (64.65%), cooking oil 5 liters (61.43 percent), mustard oil (61.21 percent), lye (60.68 percent) , vegetable ghee 2.5 kg (57.66 percent), legume mash (55.50 percent), vegetable ghee 1 kg (55.37 percent) and legume moong (48.34 %), while the decline in the prices of electricity (45.61%), chilli powder (42.08%), sugar (18.09%) and gur (3.16%) was observed.

About Mallory Brown

Check Also

S&P 500 and Nasdaq push higher as commodities rally

The local currency rose 1.3% to over US67¢. The Bloomberg Cash Dollar Index slipped 1.3%; …