Food Prices Push weekly inflation up

Data from the Pakistan Sensitive Price Indicator showed that prices jumped up 0.20% during the week ending April 3, 2025 yet held a yearly decline of 1.99% after establishing a new record for deflation.

Key Highlights

📊 SPI Snapshot

Current Week (April 3, 2025): 319.79 (+0.20% WoW)

Previous Week (March 27, 2025): 319.14

Year-Ago (April 4, 2024): 326.29 (-1.99% YoY)

Weekly Price Changes (WoW)

📈 Notable Increases:

Chicken (+7.17%)

Potatoes (+6.50%)

Onions (+5.10%)

Tomatoes (+0.66%)

Beef (+0.52%)

📉 Significant Drops:

Garlic (-6.11%)

Bananas (-5.34%)

Eggs (-4.79%)

Petrol (-0.33%)

Wheat Flour (-0.20%)

Annual Price Trends (YoY)

🔻 Biggest Declines:

Onions (-67.46%)

Wheat Flour (-31.63%)

Tomatoes (-20.93%)

Petrol (-11.89%)

Diesel (-8.29%)

🔺 Sharpest Rises:

Ladies’ Sandals (+55.62%)

Pulse Moong (+27.10%)

Powdered Milk (+25.74%)

Beef (+21.10%)

Sugar (+18.60%)

Income Group Analysis

A price increase occurred during the month in the range of 0.17% to 0.28% for all five income groups (Q1 to Q5) while yearly price trends revealed decreases from -1.42% to -2.59%.

Market Implications

The 1.99% annual decline indicates a general decrease in inflationary forces from declining food and fuel costs.

Household spending power experienced adverse effects from climbing prices in lawn textiles, beef and chicken plus footwear for low-income consumers.

Why It Matters

The inflation data might shape State Bank of Pakistan’s upcoming policy decisions during its next review period.

Consumer relief comes from affordable wheat and onion and fuel prices yet clothing prices persist with elevated levels of inflation.

The yearly inflation performance indicated by SPI showed a negative YoY reading for the first time in recent years which demonstrates changing inflation patterns during economic transition.