Pakistan’s Weekly Inflation Drops by 0.09% Amid Mixed Price Trends
By : T.M. Awan
Islamabad, March 7, 2025: Pakistan’s weekly inflation rate, measured by the Sensitive Price Indicator (SPI), recorded a 0.09% decline for the week ending March 6, 2025, according to data released by the Pakistan Bureau of Statistics (PBS). While this marks a marginal relief, the prices of essential commodities remain unstable, with some food items witnessing sharp increases.
Weekly Inflation Trends
The decline in the SPI index was driven by falling prices of key food and energy items:
Onions (-5.59%)
Tea (Branded) (-4.47%)
Garlic (-3.89%)
Tomatoes (-3.60%)
Diesel (-2.00%)
Petrol (-0.24%)
However, several household staples saw a significant price surge:
Bananas (+9.79%)
Sugar (+3.15%)
LPG (+2.64%)
Eggs (+2.52%)
Wheat Flour (+0.22%)
During the week, prices of 13 out of 51 essential items increased, 20 items became cheaper, while 18 remained unchanged.
Annual Inflation: Year-on-Year (YoY) Analysis
On a YoY basis, inflation dropped by 0.87% compared to March 2024. The biggest price declines were recorded in:
Onions (-64.92%)
Tomatoes (-57.05%)
Wheat Flour (-36.81%)
Electricity Charges (Q1) (-18.92%)
Petrol (-8.55%)
However, the cost of several essential goods surged, including:
Bananas (+30.96%)
Pulse Moong (+26.90%)
Powdered Milk (+25.86%)
Beef (+22.51%)
Vegetable Ghee (1kg) (+16.12%)
Impact on Different Income Groups
The impact of inflation varied across income brackets:
✅ The lowest-income quintile (Q1) saw the highest relief with a 2.47% YoY decline in inflation.
❌ The highest-income quintile (Q5), however, recorded a 0.24% increase, reflecting persistent cost pressures on high-end goods.
Economic Outlook & Market Forecast
Economists caution that food price volatility could persist in the coming weeks, particularly during Ramadan, a period historically associated with seasonal price fluctuations.
While Pakistan’s inflation rate has stabilized slightly, food price instability continues to impact consumers. Authorities are expected to monitor supply chains and implement price control measures to prevent excessive market fluctuations.
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