Short-term inflation spikes to record 46.65pcBusiness
Short-term inflation measured by the Sensitive Price Index (SPI) hit an all-time high of 46.65 per cent year-on-year (YoY) for the week ending on March 22, driven mainly by a major increase in food prices, data shared by the Pakistan Bureau of Statistics (PBS) showed on Friday.
Last week, short-term inflation was recorded at 45.64pc year-on-year.
On a week-on-week basis, short-term inflation increased by 1.80pc as tomatoes, potatoes and wheat flour became costlier.
The SPI monitors the prices of 51 essential items based on a survey of 50 markets in 17 cities across the country. During the week under review, the prices of 26 items increased, prices of 12 decreased and prices of 13 remained stable.
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Last month, prices rose at the fastest pace ever in the country’s history, according to available data, with food, beverage and transport costs driving inflation to a point where analysts fear “families will have to make choices and sacrifices”.
Monthly inflation, measured by a basket of products called the Consumer Price Index (CPI), jumped to 31.6pc in February year-on-year. This was the highest annual rate since available data, i.e. July 1965, according to the research firm Arif Habib Ltd.
The government is undertaking belt-tightening measures to increase revenue through taxes, and has allowed the rupee to depreciate as it thrashes out a deal with the International Monetary Fund (IMF) to secure more than $1 billion in funding.