SPI up by 22.71 percent

The inflation, measured through Sensitive Price Index (SPI) surged by 22.71 percent in the week ended on April 17 over the same period of last year owing to wild increase in the prices of essential commodities.
The data released by Federal Bureau of Statistics (FBS) on Saturday showed that SPI inflation, skyrocketing since the adjustment of oil prices in March, surged to 22.71 percent on April 17 from 12.16 percent on February 28, making life harder for the low-income group.
The purchasing power of low-income group squeezed by the last increase is yet to bear the impact of first adjustment made by the new government in the wake of increasing oil prices in the international market.
The inflation is one of the major challenges for the government, along with trade, current and fiscal deficits which the Finance Minister intends to curtail by money growth. The State Bank of Pakistan (SBP), already pursuing a tight monetary policy, anticipates that inflation would persist and magnify in the months ahead.
It is yet to be seen as to how the new government will tackle this uphill task it has inherited. The major reasons for high inflation are said to be global increase in food prices, demand-supply issues and excessive borrowing by the government.
Weekly data showed that dearness during the week has gone up from 21.44 percent to 25.58 percent for families bracketed in Rs 3000 group, 21.17 to 25.17 percent for Rs 3001 to Rs 5000, 20.35 to 23.47 percent for Rs 5001 to Rs 12000 and 18.20 to 20.09 percent for families with income of above Rs 12000.
The prices of 27 essential commodities increased during the week while 6 showed decline from the list of 53 items used to measure weekly inflation, based on data collected from 17 urban centres.
According to FBS, during the week under review, price of per kg rice Irri-6 increased to 34.82 from Rs 30.26, wheat flour average quality increased to Rs 21.81 from Rs 19.67, rice basmati broken per kg to Rs 42.39 from Rs 39.86, egg hen (farm) dozen to Rs 53.58 from Rs 50.52, red chillies per kg to Rs 172.55 from Rs 164.55, wheat average quality per kg to Rs 18.89 from Rs 18.08, bananas dozen to Rs 36.29 from Rs 35.02. potatoes per kg to Rs 12.59 from Rs 12.16, onions per kg to Rs 11.76 from Rs 11.46, gram pulse washed per kg to Rs 47.50 from Rs 46.37, vegetable ghee loose per kg to Rs 126.28 from Rs 123.81, mustard oil per kg to Rs 142.11 from Rs 139.66, chicken (farm) per kg to Rs 106.11 from Rs 104.87, washing soap cake to Rs 10.94 from Rs 10.82, voil printed metre to Rs 42.71 from Rs 42.28, curd per kg to Rs 37.65 from Rs 37.29, masoor pulse washed kg. to Rs 83.02 from Rs 82.31, cooked beef plate each to Rs 35.19 from Rs 34.93, moong pulse washed kg to Rs 52.71 from Rs 52.37 shirting metre to Rs 72.97 from Rs 72.53, milk fresh liter to Rs 31.95 from Rs 31.76, salt powdered kg to Rs 5.38 from Rs 5.35, lawn metre to Rs 88.59 from Rs 88.15, mutton kg to Rs 241.84 from Rs 240.67, beef kg to Rs 124.87 from Rs 124.37, bread plain mid size each to Rs 19.68 from Rs 19.62 mash pulse washed kg to Rs 72.62 from Rs 72.52. This shows no let-up for the poor who find it hard to meet both ends and also a big challenge for the new government.