Pakistan’s Sensitive Price Index (SPI) based inflation has also experienced a significant decline, its all-time record low for the week of March 13, 2025. Inflation went down by 1.97 percent on a year-on-year basis, as per statistics released by the Pakistan Bureau of Statistics (PBS). This reduction is a significant point in the economic history of the country.
Year-on-Year Fall in Prices
Brokerage firm Arif Habib Limited (AHL) reported the year-on-year inflation rate as the lowest in history. Decline in inflation is largely the result of considerable falls in prices of major commodities. Most remarkably, the onion prices declined by 72.32 percent, and tomatoes went down by 51.96 percent. Other essential items also saw substantial price reductions, including wheat flour (36.20 percent), chilies powder (20.00 percent), and electricity charges for the first quarter (18.92 percent). Additionally, prices for tea, various pulses, diesel, petrol, and liquefied petroleum gas (LPG) also experienced declines.
Weekly Price Movements
Contrary to this, the SPI inflation rose by 0.22 percent on a week-on-week basis. The increase was propelled by higher prices in a number of categories, led by tomatoes, which registered a growth of 36.43 percent. Other commodities such as chicken (6.40 percent), bananas (6.05 percent), and sugar (5.69 percent) also recorded price rises. Increases in prices of LPG, bread, beef, and some pulses also contributed towards the overall increase in inflation.
Overview of Price Movements
In the week in question, the PBS indicated that of 51 items under observation, 12 items (23.53 percent) had price rises. On the other hand, 15 items (29.41 percent) had price falls, while 24 items (47.06 percent) did not change price. This diverse movement reflects the uncertainty in the market and drivers of price changes.
Conclusion
In conclusion, the recent figures showing the lowest ever short-term inflation in Pakistan is a welcome relief for consumers and the economy. The steep decline in prices of necessary commodities, especially staple foods, is an indication that measures to stabilize the economy are beginning to bear fruit. But the week-on-week rise in some prices indicates that the challenges still exist in effectively controlling inflation. While it’s unfolding, it will be essential to monitor these trends both for policymakers and consumers.
