Inflation in Pakistan has reached a historic low, according to the latest report by the Pakistan Bureau of Statistics (PBS). The Sensitive Price Index (SPI) for the week ending February 27, 2025, showed a minimal increase of 0.32% compared to the previous year. This is the lowest year-on-year inflation recorded in available data, as confirmed by brokerage house Arif Habib Limited (AHL).
Despite this overall decline, prices of several essential food and household items have seen significant fluctuations. The cost of basic commodities like Moong Pulse increased by 28.47%, Bananas by 27.78%, Gram Pulse by 25.93%, and Powdered Milk by 25.86%. Similarly, Beef prices rose by 24.12%, Potatoes by 23.24%, Garlic by 17.26%, and Vegetable Ghee (1 Kg) by 16.29%. Additionally, the prices of clothing materials like Shirting and Georgette increased by 14.11% and 10.89%, respectively. Firewood, a crucial energy source for many households, also saw a 12.73% price hike.
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On the other hand, some essential goods and services became more affordable. The most notable price drops were seen in Onions (50.26%), Tomatoes (48.14%), and Wheat Flour (36.99%). Additionally, Chili Powder prices declined by 20%, while Electricity Charges for the first quarter saw an 18.92% decrease. Other significant reductions included Pulse Mash (12.16%), Lipton Tea (12.09%), Pulse Masoor (11.23%), Basmati Broken Rice (8.47%), Diesel (8.07%), Petrol (6.97%), and LPG (0.84%).
While the year-on-year inflation showed a minimal rise, the week-on-week inflation recorded a slight increase of 0.38%. This was mainly driven by price hikes in Tomatoes (11.49%), Bananas (8.32%), Eggs (5.43%), Chicken (4.13%), Potatoes (2.79%), Onions (2.04%), Beef (1.68%), Sugar (1.55%), and Cigarettes (0.51%).
Out of the 51 essential items monitored, 19 items (37.25%) saw a price increase, while 11 items (21.57%) recorded a decrease. The prices of 21 items (41.18%) remained unchanged.
This latest inflation data highlights mixed trends in Pakistan’s economy, with some essential goods becoming more expensive while others have seen a price drop. Although the overall inflation rate remains at a historic low, fluctuations in food and fuel prices continue to impact consumers. Experts believe that monitoring market trends and implementing policies to stabilize essential commodity prices will be crucial in maintaining economic stability in the coming months.
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