Business & Economy

Food Price Volatility Pushes Weekly Inflation Higher Despite Fuel and Sugar Relief

Today Lahore Rate List

Pakistan’s weekly inflation edged higher as rising food prices overshadowed the decline in fuel and select essential commodities, according to the latest weekly inflation review issued by the Pakistan Bureau of Statistics (PBS).

The report indicates that weekly inflation rose by 0.24 percent, bringing the annualized weekly inflation rate to 3.75 percent. While the increase remains modest, the data reflects persistent price instability in food items that are central to household consumption.

During the review period, prices of 17 essential goods increased, while 14 items recorded a decline, suggesting uneven price movements across markets. Economists note that such fluctuations continue to challenge low- and middle-income households.

One of the most significant developments was a sharp rise in poultry prices, which increased by 11.1 percent in just one week. Chicken prices jumped by over Rs40 per kilogram, making it one of the biggest contributors to weekly inflation. Egg prices also climbed, increasing by Rs10.31 per dozen, reflecting tight supply conditions.

Additional food items that became more expensive included chili powder, moong lentils, yogurt, fresh milk, mutton, and infant formula milk. Non-food essentials were also affected, with firewood prices rising by Rs12.35 per maund, adding to household energy costs.

However, consumers also received some relief as prices of key staples declined. Tomatoes and potatoes became cheaper by Rs9 and Rs5 per kilogram, respectively. Sugar prices fell by more than Rs7 per kilogram, easing pressure on household grocery bills. Gur (jaggery) also recorded a decline.

A notable drop was observed in diesel prices, which fell by up to Rs14 per litre during the week. Analysts say this reduction could help moderate transportation costs and eventually support price stability in other sectors. Prices of LPG cylinders, masoor lentils, and bananas also declined.

Meanwhile, PBS noted that 20 essential items, including wheat flour, bread, electricity tariffs, and clothing, showed no price change, indicating relative stability in certain core categories.

According to inflation experts, the overall trend suggests that inflation remains under control, but food prices continue to be sensitive to supply disruptions. “Short-term price shocks in poultry and dairy are common and often linked to seasonal demand and logistical issues,” said a senior economist.

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