food inflation

Weekly inflation declines 0.48 percent

Weekly inflation

Weekly inflation for the week terminating on December 2 observed a drop of 0.48 percent week-on-week, however, it increased by 18.6 percent year-on-year (YoY).

As per the analysts, the Sensitive Price Indicator (SPI) had jumped after seven weeks but then it may not verify reprieve as the Consumer Price Index (CPI) for November may enter into double digits.

The main decline in prices during the ending week was recorded as tomatoes 15.42 percent, onions 7.43 percent, chicken 6.62 percent, sugar 1.87 percent, wheat flour 0.95 percent, LPG 0.73 percent, rice Irri 0.59 percent, and gur 0.51 percent with the combined influence of 0.80 percent into the complete SPI for the joint group of 0.67 percent.

Read more: Construction material inflation pushed ongoing projects cost by Rs 200-400 billion

Whereas price upsurge was seen in washing soap 2.77 percent, bananas 2.11 percent, vegetable ghee 2.5kg 2.01 percent, cooking oil five-liter 1.32 percent, firewood 1.09 percent, and pulse masoor 1.03 percent.

Weekly inflation showed, from 51 items, rate of 20 items 45.10 percent articles amplified, 8 articles 15.69 percent declined while prices of 23 items 45.10 prices remained unchanged. But, the yearly trend showed an upsurge in the price for electricity in Q1 75.32 prices, LPG 74.85 percent, cooking oil five-liter 58.34 percent, and vegetable ghee one kg 57.87 percent.

On the other side, the main decrease in price was noted for onions 37.91 percent, pulse moong 28.20 percent, potatoes 25.82 percent, tomatoes 11.72 percent, and sugar 0.57 percent.

Fahad Rauf of Ismail Iqbal Research said CPI is projected to hit in double-digit from November i.e. 10.1 percent against 4MFY22 average of 8.7 percent and October analysis of 9.2 percent. He said electricity, food, and petroleum charges would be key contributors on a monthly (MoM) basis.

Moreover, Head of Research Pak Kuwait Investment Company, Samiullah Tariq stated, “I see 10 percent CPI in November.”

He said if Covid-19 returns, then the conceivable drop in oil prices would drive the food inflation down from 10 percent.

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