Islamabad [Pakistan], August 12 : Pakistan yet again witnessed a year-on-year increase in short-term inflation which now stood at 30.82 per cent for the week ending on August 10, official data from Pakistan Bureau of Statistics (PBS) stated, ARY News reported.
The short-term inflation rate was measured by Sensitive Price Indicator (SPI).
However, on week-on-week bases, the short-term inflation rose to 0.69 percent and showed no signs of slowing down which has further caused concern for economists and consumers alike.
On a week-on-week basis, the short-term inflation, rose 0.69pc, and shows no signs of slowing down, causing concern for economists and consumers alike.
As compared to the previous week, out of 51 items in the SPI basket, prices of 29 goods rose, whereas, prices of five goods dropped, and 17 remained unchanged, reported ARY News.
According to the week under review, the goods whose prices increased the most over the same week a year ago included wheat flour (131.81 per cent), cigarettes (109.57 per cent), gas charges for Q1 (108.38 per cent), tea Lipton (95.19 per cent), rice basmati broken (84.09 per cent), chillies powder (72.94 per cent), rice Irri-6/9 (72.74 per cent), sugar (67.90 per cent), chicken (65.87 per cent), gur (58.93 per cent), gents sponge chappal (58.05 per cent), potatoes (57.02 per cent) and tomatoes (53.66 per cent).
However, the biggest rice week-on-week was in the cost of chillies powder (3.72 per cent), powdered milk (3.65 per cent), pulse mash (3.13 per cent), garlic (2.39 per cent), sugar (2.30 per cent), chicken (2.27 per cent), salt (1.84 per cent), and eggs (1.74 per cent).
A day after Pakistan's National Assembly and the federal government were dissolved, the country's Ministry of Finance stated that five significant and ongoing economic issues are contributing to increased poverty and social vulnerabilities.
The report said a set of persistent challenges continue to haunt the national economy. On top of the list are the high fuel prices also aggravated by steep exchange rate depreciation. Overall, the impact of the Russian-Ukraine war on the economy of Pakistan remains significant, mainly due to high fuel prices.
After fuel prices, edible oil has the most impact on GDP and household consumption, but it is almost double for the poor.
Third is the persistent challenge of rising poverty. The report said the Russian-Ukraine war crisis has a serious impact on poverty that can increase the burden on the already tightened fiscal space, the Dawn reported.
After fuel prices, edible oil has the most impact on GDP and household consumption, but it is almost double for the poor. Due to the relatively higher elasticity of oil with its price, demand shock is greater than wheat and almost double in poor households, the Dawn reported.
Another key challenge remains record inflation. It said the rising inflation, particularly food inflation –– the highest in the history of Pakistan ––, increase in administered prices of petroleum products, electricity, and gas and continuous depreciation of the country’s currency has a negative impact on household consumption which will lead to greater poverty, particularly in rural areas, the ministry highlighted.
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