SPI inflation climbs 14.52% as fuel and food prices surge

Short-term inflation in Pakistan, measured through the Sensitive Price Index (SPI), rose 14.52% year-on-year in the week ending May 14, according to data released by the Pakistan Bureau of Statistics. The increase reflects continued pressure on household budgets, driven primarily by rising prices of fuel, electricity, and essential food commodities.

The SPI showed a broad-based upward trend, with major contributions coming from petroleum products and staple goods. Petrol prices surged 64.23%, while diesel rose 61.61%. Electricity charges increased by 52.58%, wheat flour by 57.56%, and liquefied petroleum gas (LPG) by 48.34%, highlighting persistent cost-push inflation across key sectors of the economy.

Food prices also remained under pressure, particularly perishable items such as onions, tomatoes, potatoes, mutton, beef, and powdered milk. These increases have added strain on already stretched household incomes. However, some relief was recorded in items like pulses, sugar, and eggs, which saw comparatively lower prices or declines in certain weeks.

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On a week-on-week basis, the SPI increased by 0.47%, indicating that inflationary pressures are still building despite occasional slowdowns in price growth. The report shows that SPI has now risen for 40 consecutive weeks, signaling a prolonged inflationary cycle.

Yearly data shows that besides fuel and utilities, several food items also recorded sharp increases. Onions rose 50.06%, tomatoes 40.66%, mutton 15.79%, and beef 12.96%. These sustained increases continue to impact low- and middle-income households the most.

Economists note that energy-driven inflation, combined with global market volatility and regional geopolitical tensions, particularly in the Middle East, has contributed to higher transport and production costs. This has further amplified inflation across supply chains.

While some commodity prices, including potatoes, chicken, and eggs, showed annual declines, overall inflationary pressure remains elevated, keeping the cost of living high for consumers across the country.