The SPI inflation surged by 17.03 percent in week ending March 20 over the same period of last year, according to Federal Bureau of Statistic on Saturday. The Statistic Division noted substantial increase in the prices of essential commodities during the last few weeks.
The twice adjustment in the oil prices during the last few weeks had cumulative effect on inflation. The oil prices have been on the rise in the global market for quite some time, but the government had been enduring the difference through subsidies rather than passing on the increase to the consumers.
The increase in pressure on fiscal and current account has forced the economic managers now to pass on the difference at once to the consumers which otherwise would have been gradual. The State Bank of Pakistan has been pursuing tight monetary policy to control the inflationary pressure that it anticipates to persist and magnify in the months ahead.
The inflation led by demand-supply problems, excessive borrowing by the government and delayed but compulsory adjustment in oil prices poses serious threat to the economy. Weekly data on SPI inflation released by the FBS showed that dearness was 19.03 percent for Rs 3000 income group, 18.40 percent for Rs 3001 to Rs 5000 income group, 17.61 percent for Rs 5001 to Rs 12000 and 15.76 percent for families having above Rs 12,000 monthly income .
During the week price of per kilogram tomatoes went up from Rs 36.67 to Rs 40.24, chicken from Rs 90.67 to Rs 95.54, cooking oil tin 2.5 kg from Rs 366.53 to Rs 374.76, vegetables Rs 357.47 to Rs 363. 94, and red chillies from Rs 146.20, to Rs 153.40.
The prices of 27 essential commodities increased during the week while only 11 items declined from the list of 53 essential commodities being used to measure weekly inflation. The list showed that prices of 15 items remained stable during the week but were dearer as compared to the corresponding period of last year.
The SPI bulletin, based on data of 53 items collected from 17 urban centers, showed no let-up for the poor who have to spend more money to buy the same goods every week.