Pakistan’s weekly inflation indicator rises 8.62% — Dawn
In Pakistan, the Sensitive Price Indicator (SPI) for the week ending September 10 rose by 8.62% year on year. As Dawn reports, the indicator primarily tracks prices for everyday goods that are important for low- and lower-middle-income households.
Food and energy prices
Onion prices more than doubled over the year. Liquefied petroleum gas rose by 55%, diesel fuel by 45%, and petrol by 39%. Wheat became 30% more expensive, while electricity bills increased by 25%.
The publication also notes double-digit annual price increases for beef, mutton, and chili peppers. According to the Dawn editorial board, the incomes of most of the population are not keeping pace with inflation, causing people to reduce consumption. The editorial board cites statistics that, it says, indicate a reduction in the amount of food consumed by the country’s residents in order to cope with rising costs.
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Proposals for the government
The Dawn editorial board links the current price pressure to the prolonged war in the Persian Gulf, which is affecting global markets. In the publication’s view, Pakistan is particularly vulnerable to this because of its dependence on Gulf countries’ markets for energy supplies.
Dawn believes that the authorities could reduce the fuel levy by compensating for lost budget revenues through sectors that traditionally enjoy broad tax breaks. The editorial board also called on the authorities to monitor agricultural product markets and, where necessary, counter stockpiling and speculation.
