ISLAMABAD: Short-term inflation, measured by the Sensitive Price Index (SPI), dipped 1.52pc year-on-year for the week ending June 26, mainly due to a decline in the retail prices of perishable items in the domestic market.

SPI-based inflation has shown a partial decline for the past four consecutive weeks, largely driven by falling prices of perishable vegetables, chicken, wheat flour, and pulses. On a week-on-week basis, the index dropped by 0.18pc, according to official data released on Friday.

The recent trend follows weeks of volatility, with sharp increases in the prices of sugar and meat contributing to inflationary pressure. However, the latest decline broke a three-week uptrend, primarily owing to a fall in the prices of tomatoes, potatoes, and onions. Meanwhile, sugar prices continued their upward trajectory, reaching Rs180 to Rs190 per kg in retail markets.

The overall moderation in short-term inflation is partly attributed to the higher base effect from the corresponding period last year. Prices of most essential items remained stable, with the exception of wheat flour and a few perishable goods. However, meat prices have been rising steadily over recent weeks.

Published in Dawn, June 28th, 2025