ISLAMABAD: Short-term inflation continued its upward trajectory for the second consecutive week, rising 44.64 per cent year-on-year in the week ending Jan 18, according to official data released on Friday, showing a steep increase since May 2023.

The persistent rise in inflation, observed in the first two weeks of January this year, indicates no signs of deceleration in the near term. This spike is primarily fuelled by a surge in gas prices, electricity tariff and the cost of essential items.

The weekly inflation, measured by the Sensitive Price Index (SPI), hit a record 48.35pc year-on-year in early May 2023, but then decelerated as low as 24.4pc in late August before surging past 40pc during the week ending Nov 16. Since then, the SPI has consecutively remained above 41pc.

With the latest reading, the weekly inflation remained above 41pc for the 10th week in a row, according to the Pakistan Bureau of Statistics.

The SPI witnessed a 1.36pc week-on-week increase as of Jan 11. This rise follows last week’s increase of 0.34pc.

On an annual basis, the items whose prices increased the most included gas charges for Q1 (1108.59pc), tomatoes (183.16pc), cigarettes (93.22pc), chilies powder (81.74pc), wheat flour (65.03pc), garlic (60.45pc), gents sponge chappal (58.05pc), sugar (57.26pc), gents sandal (53.37pc), rice Irri-6/9 (49.95pc), gur (49.45pc) and eggs (47.54pc).

In contrast, the prices of mustard oil dropped 6.86pc year-on-year, followed by bananas (2.23pc) onions (2pc), and vegetable ghee (1.17pc).

The short-term, or weekly, inflation is measured by a basket of goods and services called the SPI, which stood at 319 compared to 317.92 in the preceding week and 220.54 a year ago.

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 22 items increased, eight decreased and 21 remained stable compared to the previous week.

The items whose prices saw the highest increase week-on-week included onions (8.69pc), tomatoes (7.51pc), energy sever (2.72pc), chicken (2.26pc), garlic (2.18pc), bananas (2.14pc), eggs (1.89pc), match box (1.67pc), pulse mash (1.59pc) and pulse moong (1.46pc).

The items whose prices dropped the most over the previous week included potatoes (3.85pc), petrol (2.99pc), sugar (0.90pc), tea Lipton (0.20pc), vegetable ghee 2.5kg (0.14pc), cooking oil 5-litre (0.08pc), wheat flour (0.07pc) and gur (0.04pc).

Published in Dawn, January 20th, 2024