ISLAMABAD: Short-term inflation, measured by the Sensitive Price Index (SPI), rose by 2.30 per cent year-on-year in the week ending Aug 21, primarily due to a continuous rise in the retail prices of perishable items in the domestic market.

This marks the fifth consecutive week of an upward trend in SPI inflation, with the increase largely driven by surging prices of perishable goods such as tomatoes, onions, chicken, and wheat flour. However, the SPI recorded a slight decline of 0.01pc compared to the previous week, primarily due to a reduction in diesel prices, according to official data released on Friday.

The spike in retail prices of sugar, vegetables, and meat has contributed to reversing the positive trend observed in recent weeks. For instance, the retail price of sugar has risen to between Rs185 and Rs200 per kilogram. Despite this, overall short-term inflation has slowed, partially due to the high base from last year, while prices remained stable for most items, except for wheat flour and a few perishable products.

Published in Dawn, August 23rd, 2025