ISLAMABAD: Short-term inflation, measured by the Sensitive Price Index (SPI), rose 13.52 per cent year on year for the week ending July 2, mainly due to higher retail prices for perishable food items, according to official data released on Friday.

A slight slowdown in short-term inflation began, mainly due to a steep cut in petroleum product prices over the past two weeks, which had reached unprecedented levels. On a week-on-week basis, the index decreased by 0.98pc compared with 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 year-on-year gains in key items, including electricity charges (49.14pc), wheat flour (68.47pc), and liquefied petroleum gas (44.08pc).

Food inflation remained elevated, with notable increases in the prices of onions, tomatoes, potatoes, mutton, beef and wheat flour. The government has kept petrol and diesel prices unchanged since last Friday, despite international oil prices falling below pre-war levels.

Energy-related costs continued to weigh on household budgets and push up transport expenses across the economy. The SPI has now recorded an annual increase for the 45th consecutive week. Although the pace of growth has slowed, it reflects sustained pressure on consumers.

Published in Dawn, July 4th, 2026