SUNDAY OCTOBER 02: Soaring vegetable prices push up SPI to 9.09 percent

ISLAMABAD: Soaring prices of vegetables in the backdrop of floods have pushed up Sensitive Price Index (SPI) to 9.09 percent in the week ending September 29, 2011 with analysts fearing inflation would intensify further in coming days as a consequence of recent increase in petroleum prices. Analysts said high inflation could diminish the existing prospects of growth and savings, as the latter is critical for investment.
According to them phenomena of high inflation and low return on savings is not good omen for the economy. The inflation, they said could be reduced by addressing structural issues in the economy to avert repercussions. Official SPI figures revealed an upsurge in weekly inflation to 9.09 per cent on September 29 from 7.17 per cent on September 15 with weekly increase of 0.27 per cent and 0.06 per cent during the last two weeks.
The SPI for the week under review was recorded at 175.24 compared to 175.14 for the previous week largely because of increase in the prices of some perishable items. The price of per kg tomato went up from Rs 54 to Rs 67 during the period under review, onion to Rs 33.60 per kg from Rs 31.71 and red chillies from Rs 296 per kg to Rs 304 per kg.
The price of powder loose per kg increased to Rs 304.60 from Rs 296.31 during the week under review, shirting per meter to Rs 105.24 from Rs 104.36, mustard oil per kg to Rs 175.31 from Rs 174.01, energy saver 14 watts each to Rs 137.21 from Rs 136.32, egg hen (farm) per dozen to Rs 83.30 from Rs 82.78, wheat 10 per kg to Rs 260.80 from Rs 259.26, beef per kg to Rs 245.91 from Rs 244.73, gur per kg to Rs 91.50 from Rs 91.09, cooked beef plate each to Rs 57.96 from Rs 57.71, gram pulse washed per kg to Rs 72.71 from Rs 72.49, milk fresh per liter to Rs 56.20 from Rs 56.05, mutton per kg to Rs 464.91 from Rs 464.03, coarse lattha per meter to Rs 98.44 from Rs 98.29, rice irri-6 per kg to Rs 45.50 from Rs 45.44, rice basmati broken per kg to Rs 58.87 from Rs 58.81. The SPI computed with 2007-08 base year after collecting data of 53 essential commodities from 17 urban centers for all income groups revealed that highest impact of inflation was on low-income group.