Pakistan's inflation declines 0.35% this week

Inflation in Pakistan has decreased by 0.35% for the week ending March 20, according to the Pakistan Bureau of Statistics (PBS). The decline is mainly due to significant drops in vegetable prices. Tomatoes saw the largest decrease at 7.08%, followed by onions at 6.07%. Other vegetables and essential items like garlic, eggs, and potatoes also fell in price. While many prices dropped, some goods did see increases. Long cloth and printed lawn fabric rose by about 1.23% and 2.9%, respectively. Prices for LPG and bananas also increased slightly. Other daily necessities, such as bread and beef, experienced minor price hikes. Annually, the Sensitive Price Indicator (SPI) inflation showed a rare 1.2% decline. This was largely due to reduced prices for key items like onions, which are down 67.67% from last year. Prices for wheat flour and tomatoes have also fallen significantly. Despite the overall drop in some prices, many essential goods remain costly compared to last year. For instance, ladies' sandals increased by 75.09%, and powdered milk went up by 25.75%. Prices for chicken, sugar, and vegetable ghee also saw notable annual increases. The impact of inflation varies among different income groups. Lower-income households experienced a 1.84% drop in prices, while wealthier households saw only a 0.49% decline. This suggests that the recent price adjustments are helping those with less income more than those with higher incomes. Overall, while inflation is still a concern, it has been somewhat controlled. Experts predict that inflation for March 2025 may fall to a three-decade low, ranging between 0.5% and 1.0% year-on-year. This would significantly lower the average inflation rate for the first nine months of the fiscal year compared to last year.