SPI data Reveals Increasing Economic Pressure

Islamabad – Short-term inflation in Pakistan, as measured by the Sensitive Price Index (SPI), increased ​by 4.07% year-on-year in the week ending October 2, ​2025. This marks the tenth consecutive week of upward ⁤trend, signaling growing economic pressure on⁢ households.

Key Drivers of Inflation

The primary factors contributing to this⁢ increase are rising retail ⁤prices of essential food items and⁤ petroleum products.⁤ Specifically, a ​surge in the cost of perishable goods, including tomatoes, has considerably ⁤impacted the SPI.

The weekly inflation rate saw a 0.56% increase compared to the previous week, according to⁣ official data ​released on Friday.

Floods Disrupt Supply Chains

Disruptions to⁤ supply chains caused by recent floods have led to price increases for onions and potatoes. Moreover, a substantial spike in the retail ⁢prices of sugar and meat has contributed to ‍the⁢ overall inflationary trend.

Currently, the retail‌ price⁤ of sugar is ⁢ranging from Rs195 ​to⁢ Rs200 per kilogram.

Base Effect‌ and Stable Prices

While inflation is rising, the overall rate has been ⁣somewhat moderated by a higher base from the previous year.The prices ‍of most commodities, excluding wheat flour‍ and certain perishable ⁤items, have remained relatively stable. Though, the price of ‌meat has been steadily increasing in recent weeks.

Recent Inflation Trends

Pakistan experienced a peak in weekly inflation ‍of 48.35%‍ year-on-year ⁣in early May 2023. This⁤ rate ⁣afterward decelerated to 24.4% by late August 2023, before recently surging past⁣ 40%⁢ during the week ending november 16, 2023.