Wednesday, February 12, 2025
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Pakistan’s weekly inflation increases for the second consecutive week, wheat flour price soars

Inflation continues to rise in Pakistan for the second consecutive week

Karachi: Pakistan continues to face the harsh reality of persistent inflation that has been affecting the lives of its citizens for quite some time now. According to official data released on Friday, the weekly inflation rate increased by 0.27% week-on-week and 48.02% year-on-year, with the price of wheat flour surging to Rs2,757.32 per 20kg bag during the week ending May 11.

This marks the second consecutive week that inflation has remained above 48%, with short-term inflation reaching an all-time high of 48.35% for the period that ended on May 4. The Pakistan Bureau of Statistics (PBS) has attributed the rise in the sensitive price indicator (SPI) to a number of factors, including an increase in the prices of tomatoes (6.32%), gur (3.41%), wheat flour (2.76%), prepared tea (2.66%), potatoes (2.14%), cooked beef (2.12%), cooked daal (1.98%), powdered milk (1.91%), eggs (1.83%), broken basmati rice (1.42%), pulse masoor (1.19%), beef (1.18%), and washing soap (1.04%).

On the other hand, a decrease in prices was observed for onions (9.40%), chicken (2.25%), LPG (1.51%), garlic (1.39%), bananas (0.68%), pulse gram (0.13%), and mustard oil (0.05%). The increase in prices of chicken and wheat flour was blamed for the rise in SPI by Fahad Rauf, head of research at Ismail Iqbal Securities.

As highlighted in the previous week, wheat flour prices are increasing due to a shortage being faced by flour mills on account of lower government supply. News reports suggest that 144 flour mills in Rawalpindi and Islamabad have shut down, and the shortage is expected to continue for at least another week.

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The rising inflation rate is affecting people across all income brackets. According to the PBS, for the groups spending up to Rs17,732; Rs17,733-22,888; Rs22,889-29,517; Rs29,518-44,175; and above Rs44,175, the year-on-year SPI increased by 43.67%, 47.61%, 46.96%, 46.99%, and 49.43%, respectively.

The impact of inflation can be seen in all aspects of life in Pakistan. The cost of living has become increasingly unaffordable for the average person, with essential items such as food and household supplies becoming more expensive by the day. The rise in inflation is also affecting the purchasing power of the people, leading to a decline in their overall standard of living.

The government of Pakistan has taken several measures to address the issue of inflation, but so far, they have not had a significant impact. The State Bank of Pakistan has been raising interest rates to curb inflation, but this has not been effective due to the high level of inflation in the economy. The government has also been taking steps to increase the supply of essential items such as wheat, but these efforts have not been enough to bring down the prices.

Read More: Gold prices drop in Pakistan after reaching record highs

The situation calls for a multi-faceted approach that addresses the root causes of inflation in Pakistan. Some of the factors that contribute to inflation include a weak economy, an increase in demand for goods and services, and a shortage of supply. The government needs to focus on improving the economy, which would increase production, create jobs, and boost the supply of essential items. It also needs to reduce the burden of taxes on the people, which would increase their purchasing power and encourage spending.

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