SPI increases by 7.79 percent

The Sensitive Price Indicator (SPI) year-on-year of 53 daily use items for week ending on December 8, 2005 has shown 7.79 percent increase as compared to the corresponding week of last year. Weekly data of SPI exhibits that this week it climbed to 7.79 percent from 7.46 percent of previous week.
The SPI data shows that downward trend started from the week ending on November 2, 2005 when it was recorded at 9.21 percent. During week ending on November 24, it came down to 6.85 percent, but after that it again started climbing, and is still on the rise.
However, the significant feature of the weekly bulletin of Federal Bureau of Statistics (FBS) was that year-on-year the rise in the prices of some necessities and kitchen items was exorbitant. These items were potatoes, onions, diesel, eggs, petrol, kerosene oil, sugar, fresh milk, fire wood, gur, and all kinds of pulses which hit the low income group.
The bulletin on SPI, based on data of about 53 items from 17 centres, showed that 15 items registered increase, 11 items showed decline, and prices of 27 items remained unchanged.
However, detailed analysis showed that Y-on-Y basis six items were dearer by double-digit. These included moong pulse by 37 percent, sugar 32 percent, mash pulse 21 percent, egg farm 21 percent, firewood 20 percent, and beef increased by 11 percent.
However, compared to previous week, in a short span of one week, the prices of tomatoes increased by 4.47 percent, sugar 2.27 percent, and firewood increased by 1.76 percent over the previous week.
The FBS figures further suggested that though the prices of 27 items posted no change during the week, yet compared to the corresponding week of last year, nine items are now costlier. For example, petrol is dearer by 52 percent, diesel 52 percent, kerosene 34 percent, match box 22 percent, ladies sandal (Bata) 20 percent, fresh milk 12 percent, tea (prepared) 11 percent, curd 10 percent, and salt by 10 percent.
The bulletin further indicates that though the prices of 11 items decreased, compared to the prices of corresponding week of last year, items which showed increase in their prices were gur, which is dearer by 51 percent, garlic 21 percent, potatoes 19 percent, and onion by 17 percent.
The State Bank of Pakistan (SBP) is doing its best to control the price hike spiral through tightening its monetary policy. Besides, the government is also taking some regulatory decisions like import of duty-free kitchen goods. However, the rising trend in the prices of essential item is still a challenge to the economic managers.