Food costs push short-term inflation up 9pc

Published
0
FOOD inflation remained elevated, with notable increases in the prices of onions, tomatoes, potatoes, mutton, beef and wheat flour.—Online/file
FOOD inflation remained elevated, with notable increases in the prices of onions, tomatoes, potatoes, mutton, beef and wheat flour.—Online/file

ISLAMABAD: Short-term inflation, measured by the Sensitive Price Index (SPI), surged by 9.05 per cent year-on-year for the week ending July 30, mainly due to prices of perishable food products, according to official data released on Friday.

Short-term inflation has started rising again, mainly driven by a steady increase in daily petroleum prices. As a result, the transportation cost has increased over the period of last one week. This increase in transportation prices also resulted in higher prices of essential food items.

On a week-on-week basis, the index decreased by 0.91pc compared to the previous week, according to the Pakistan Bureau of Statistics.

The overall SPI showed a broad-based rise, indicating continued pressure on the cost of living. The increase was largely driven by sharp gains in key items on a year-on-year basis, including tomatoes (228.71pc), onions (95.36pc) wheat flour (78.65pc), diesel (37.42pc), petrol (23.28pc) and beef (13.44pc).

Food inflation remained elevated, with notable increases in the prices of onions, tomatoes, potatoes, mutton, beef and wheat flour.

Despite this limited easing, energy-related costs continued to weigh on household budgets and push up transport expenses across the economy. The SPI has now recorded an increase for the 68th consecutive week. Although the pace of growth has slowed, it reflects sustained pressure on consumers.

This is a cost-push inflation, which means that energy took priority, followed by food. As a result, the average households are under pressure due to higher consumer prices.

The items, whose prices increased the most over the previous week included onions (7.62pc), diesel (4.17pc), eggs (3.16pc), petrol (2.46pc), wheat flour (2pc), potatoes (1.93pc), LPG (1.90pc), pulse gram (1.44pc), vegetable ghee 2.5kg (0.71pc), pulse mash (0.69pc), pulse masoor (0.64pc) and firewood (0.15pc).

The items whose prices saw a decline week-on-week included tomatoes (22.96pc), chicken (11.20pc), electricity charges for Q1 (9.06pc), bananas (0.70pc), sugar (0.16pc) and pulse moong (0.15pc).

However, on an annual basis, the items whose prices increased the most were tomatoes (228.71pc), onions (95.36pc), wheat flour (78.65pc), LPG (51.76pc), diesel (37.42pc), petrol (23.28pc), gents sponge chappal (16.69pc), mutton (16.06pc), chilies powder (15.20pc), bananas (14.69pc), beef (13.44pc) and bread plain (9.69pc).

In contrast, the prices of potatoes dropped 30.89pc, followed by pulse gram (19.89pc), chicken (19.56pc), sugar (17.48pc), salt powder (14.09pc), pulse masoor (12.80pc), eggs (8.38pc) and pulse moong (7.38pc).

The index, comprising 51 items collected from 50 markets in 17 cities, is computed weekly to assess the prices of essential commodities and services at shorter intervals. Data showed that the prices of 27 items increased, six decreased, and 18 remained stable compared to the previous week.

Published in Dawn, August 1st, 2026

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Kashmir unresolved
Updated 30 Sep, 2026

Kashmir unresolved

The just solution lies in India addressing the issue through a trilateral dialogue involving the legitimate representatives of the Kashmiri people and Pakistan.
Water shortage
30 Sep, 2026

Water shortage

THAT the country is entering the Rabi season with an anticipated water shortage of nearly 25pc, the lowest carryover...
Young hearts
30 Sep, 2026

Young hearts

THE observance may have passed, but the message of World Heart Day should not fade with it. The occasion is a useful...
Terror and politics
Updated 29 Sep, 2026

Terror and politics

There is an urgent need to tone down the rhetoric and tackle terrorism as a collective challenge for both the affected provinces and the federation.
Watching the glaciers
29 Sep, 2026

Watching the glaciers

THE latest signs from Pakistan’s mountains are worrying. Suparco says the number of unfrozen glacial lakes it...
Dangerous agenda
29 Sep, 2026

Dangerous agenda

AS the world remains fixated on the US-Iran conflict, elsewhere in the Middle East, Israel is consolidating its grip...