Tag: cost of living

  • Govt sets ‘targets’ to reduce cost of living and boost employment

    Govt sets ‘targets’ to reduce cost of living and boost employment

    Dr Musadik Masood Malik, the Minister for Petroleum Division, affirmed on Saturday that the government is focusing on controlling inflation and creating employment opportunities as its primary objectives.

    During a press conference, Dr Malik stated that, under the directives of the Prime Minister, efforts are being made to provide maximum relief to the populace, resulting in a gradual decrease in inflation across the country.

    He mentioned that the Prime Minister has set specific targets for all ministers to alleviate the public’s burden by controlling inflation and enhancing job creation.

    Dr Malik highlighted several external factors, such as floods, natural disasters, and conflicts in Ukraine and the Middle East, which have disrupted the commodity cycle.

    Despite these challenges, the government’s measures have led to a significant reduction in the Consumer Price Index (CPI) from 37 per cent to 17 per cent. Similarly, food inflation has dropped from 40 per cent to 11.5 per cent, indicating a move towards economic stability.

    He also noted that the prices of petroleum products have been reduced, providing around Rs25-26 per litre relief on petrol within a month. Dr Malik expressed optimism that inflation will continue to decline in the coming days.

    The minister reported a 50 per cent increase in tractor purchases and a 17 per cent rise in urea production over the past year, reflecting positive economic trends.

    He assured that the forthcoming budget would be balanced and geared towards providing relief, with a projected 30 per cent increase in tax collection. Additionally, the country has seen a rise in exports and a decline in imports.

    Dr Malik concluded by stating that the budget would include more incentives for small businesses and the IT sector, aiming to foster growth and stability in these critical areas.

  • Pakistanis catch a break as weekly inflation hits 18-week low

    Pakistanis catch a break as weekly inflation hits 18-week low

    Short-term inflation in Pakistan dipped to 29.06 per cent year-on-year by the week ending March 21, stepping down from its prolonged stint above 30 per cent for the past 18 weeks, as per recent official data.

    The pullback in weekly inflation, tracked by the Sensitive Price Index (SPI), was primarily attributed to a drop in the prices of key staples like tomatoes, onions, and potatoes. The SPI noted a 1.13 per cent week-on-week decrease as of March 21, down from 32.89 per cent recorded in the previous week.

    This follows an unbroken 11-week stretch of inflation topping 40 per cent, starting from 29 per cent noted on November 8, 2023. The surge was largely fueled by upticks in gas prices, electricity tariffs, and essential kitchen item costs.

    Weekly inflation peaked at a record 48.35 per cent year-on-year in early May 2023, before cooling off to as low as 24.4 per cent in late August 2023, only to surge past 40 per cent again by the week ending November 16, 2023.

    Among the notable declines in prices on a week-on-week basis were tomatoes (36.73 per cent), onions (19.58 per cent), potatoes (4.02 per cent), garlic (2.87 per cent), pulse mash (1.25 per cent), wheat flour (1.02 per cent), sugar (0.95 per cent), pulse masoor (0.86 per cent), and diesel (0.60 per cent).

    Conversely, significant increases were seen in the prices of LPG (1.49 per cent), shirting (0.74 per cent), beef (0.53 per cent), rice basmati broken (0.48 per cent), mutton (0.42 per cent), mustard oil (0.40 per cent), rice irri 6/9 (0.25 per cent), powdered milk (0.14 per cent), and georgette (0.03 per cent) compared to the previous week.

    On an annual basis, notable price hikes were observed in gas charges for Q1 (570 per cent), chilli powder (86.05 per cent), gents sponge chappal (58.05 per cent), garlic (57.41 per cent), onions (54.65 per cent), gents sandal (53.37 per cent), gur (39.86 per cent), sugar (35.01 per cent), salt powder (33.29 per cent), energy saver (29.83 per cent), and pulse mash (27.31 per cent).

    In contrast, certain items witnessed declines, with cooking oil 5-litre dropping by 21.35 per cent, followed by vegetable ghee 2.5 kg (18.48 per cent), vegetable ghee 1 kg (18.44 per cent), mustard oil (13.90 per cent), bananas (13.52 per cent), diesel (2.47 per cent), and cigarettes (0.06 per cent).

    The short-term inflation, gauged through the SPI, stood at 323.50, compared to 327.21 in the preceding week and 250.66 a year ago. Comprising 51 items collected from 50 markets in 17 cities, the SPI is calculated weekly to monitor the prices of essential commodities and services at shorter intervals. Data indicates that prices of nine items increased, 17 items decreased, and 25 items remained stable compared to the previous week.

  • Pakistan grapples with 23% surge in power generation costs amidst economic woes

    Pakistan grapples with 23% surge in power generation costs amidst economic woes

    In a startling development, the cost of power generation in Pakistan has surged by a staggering 23 per cent in January 2024, compared to the same period last year, reports the brokerage house Topline Securities.

    The average cost per kilowatt-hour (KWh) soared to Rs13.8, marking a significant increase from Rs11.20/KWh recorded in January 2023.

    The substantial hike in costs is attributed primarily to elevated expenses in power generation from gas and nuclear sources, which witnessed a spike of 43 per cent and 24 per cent, respectively, on a yearly basis. Moreover, the fuel cost for furnace oil (FO) also surged by 22 per cent year-on-year, according to data from Topline Securities.

    This surge comes as a severe blow to the populace, which is already grappling with high inflation and sluggish economic activity. Rising electricity bills have compounded the financial burden on citizens.

    In terms of power generation, Pakistan witnessed a marginal decline of over 2 per cent in January 2024 compared to the same period last year, with total generation amounting to 8,313 GWh (11,175 MW).

    The decline in power generation was predominantly due to a decrease in coal-based generation, which plummeted by 20 per cent year-on-year. Gas and wind power generation also witnessed declines of 10 per cent and 55 per cent, respectively.

    However, there was a 9 per cent increase in power generation on a monthly basis, indicating some fluctuation in the generation patterns.

    Coal emerged as the primary source of power generation in January 2024, constituting 23.4 per cent of the total generation mix, surpassing nuclear and RLNG (re-gasified liquid natural gas). Nuclear energy accounted for 20.8 per cent of the overall generation, while RLNG contributed 18.2 per cent.

    Renewable sources like wind, bagasse, and solar collectively made up a modest portion of the generation mix, indicating a potential for further development and investment in sustainable energy solutions.

    Overall, the surge in power generation costs coupled with a slight decline in generation highlights the challenges facing Pakistan’s energy sector and underscores the need for strategic measures to ensure an affordable and sustainable power supply in the country.

  • Pakistan’s weekly inflation soars beyond 44%

    Pakistan’s weekly inflation soars beyond 44%

    In the latest economic developments, Pakistan has witnessed a surge in weekly inflation for the third consecutive week, marked by a notable increase in the Sensitive Price Indicator (SPI) for the Combined Group.

    The SPI for the said group witnessed a significant rise of 1.36 per cent week over week (WoW) during the week concluded on January 11, 2024.

    Adding to the economic landscape, the SPI showcased a remarkable year-over-year (YoY) increase of 44.16 per cent, comparing the current statistics with the corresponding period from the previous year.

    Last week’s SPI for the Combined Group demonstrated a WoW increase of 0.81 per cent.

    Data released by the Pakistan Bureau of Statistics (PBS) reveals that the combined index stood at 317.92 in comparison to 313.66 on January 4, 2024.

    Notably, this index was recorded at 220.53 a year ago, specifically on January 12, 2023.

    Among the 51 items analysed, 21 experienced an increase in average prices, while prices for 8 items decreased, and 22 items remained stable.

    The noteworthy price hikes during the week were observed in tomatoes (15.63 per cent), onions (8.94 per cent), chicken (6.42 per cent), electricity charges for Q1 (5.11 per cent), and eggs (4.31 per cent).

    Conversely, significant decreases were noted in the prices of potatoes (5.92 per cent), vegetable ghee (1 KG) (0.84 per cent), sugar (0.43 per cent), vegetable ghee (2.5 KG) (0.29 per cent), and mustard oil (0.26 per cent).

    The weekly SPI percentage change, when categorised by income groups, indicated a uniform increase ranging between 1.2 per cent and 1.34 per cent across all quantiles. The lowest-income group experienced a 1.2 per cent rise, while the highest-income group recorded a 1.34 per cent increase.

    On a yearly basis, the analysis of SPI change across various income segments revealed an overall increase ranging from 36.06 per cent to 47.48 per cent.

    The lowest-income group witnessed a yearly rise of 36.06 per cent, whereas the highest-income group recorded a significant increase of 42.71 per cent.

  • Cost of living rises in Pakistan: Weekly inflation jumps by 0.81%

    Cost of living rises in Pakistan: Weekly inflation jumps by 0.81%

    In a recent report by the Pakistan Bureau of Statistics (PBS), the Weekly Sensitive Price Indicator (SPI) for the Combined Group witnessed a marginal increase of 0.81 per cent Week on Week (WoW), concluding on January 04, 2024.

    The SPI also exhibited a substantial 42.86 per cent Year on Year (YoY) surge when compared to the corresponding period from the previous year.

    The Combined Index, reflecting the overall price movement, stood at 313.66 as of January 04, 2024, compared to 311.14 on December 28, 2023. In contrast, a year ago on January 05, 2023, the index was reported at 219.56.

    Out of the 51 items considered, the average prices of 19 items experienced an increase, 09 items observed a decrease, and 23 items remained stable throughout the week.

    During this period, notable price hikes were observed in tomatoes (16.04 per cent), chicken (13.98 per cent), eggs (3.20 per cent), onions (3.04 per cent), and bananas (2.13 per cent).

    Moreover, significant decreases were noted in the prices of potatoes (8.68 per cent), tea Lipton (1.29 per cent), garlic (0.68 per cent), and cooking oil 5 litre & vegetable ghee 2.5 kg (0.54 per cent) each.

    Analysing the weekly SPI percentage change across income groups revealed a universal increase ranging from 0.79 per cent to 0.84 per cent. The Lowest Income Group experienced a rise of 0.81 per cent, while the highest income group recorded a slightly lower increase of 0.8 per cent.

    On a yearly basis, the SPI change across different income segments exhibited a general increase ranging from 35.33 per cent to 46.38 per cent. The Lowest Income Group saw a yearly rise of 35.33 per cent, while the highest income group recorded an increase of 41.35 per cent.

    Noteworthy price points in the market included Sona urea, with an average price of Rs4,618 per 50 kg bag, marking a 0.02 per cent increase from the previous week and a substantial 72.45 per cent surge compared to the previous year.

    In contrast, the average Cement price recorded at Rs1,226 per 50 kg bag showed a 0.47 per cent decrease from the previous week but stood 17.43 per cent higher than prices observed last year.

    These fluctuations in the SPI underscore the dynamic nature of the market, reflecting both short-term variations and longer-term economic trends.

    As consumers and businesses navigate these changes, analysts are closely monitoring the SPI for insights into broader economic patterns.

  • Cost of living rises: SPI records increase in weekly inflation 

    Cost of living rises: SPI records increase in weekly inflation 

    The Sensitive Price Indicator (SPI) recorded a slight increase of 0.71 per cent for the week ending November 3, 2023, compared to the previous week.

    According to data from the Pakistan Bureau of Statistics (PBS), the combined index stood at 279.08 on November 3, 2023, up from 277.11 on October 26, 2023, and significantly higher than the index of 214.88 recorded a year ago on November 3, 2022.

    Out of 51 items, the prices of 12 items increased, 14 items decreased, and 25 items remained stable. 

    The most notable price increases were seen in tomatoes (25.58 per cent), onions (25.25 per cent), chicken (10.79 per cent), potatoes (1.61 per cent), Lipton tea (1.58 per cent), eggs (1.30 per cent), garlic (0.50 per cent), basmati broken rice (0.19 per cent), georgette (0.28 per cent), and firewood (0.05 per cent).

    Conversely, significant price decreases were observed in gur (2.66 per cent), bananas (1.78 per cent), 5-litre cooking oil (1.62 per cent), 1 kg vegetable ghee (1.23 per cent), LPG cylinders (1.05 per cent), masoor pulse (0.93 per cent), wheat flour (0.62 per cent), washing soap (0.41 per cent), and mustard oil (0.32 per cent).

    The weekly SPI percentage change across different income groups revealed an increase in SPI for all quantiles, ranging from 0.64 per cent to 0.86 per cent.

  • Annual inflation increases by 29.65% in Pakistan, driven by rising gas prices 

    Annual inflation increases by 29.65% in Pakistan, driven by rising gas prices 

    According to the Pakistan Bureau of Statistics (PBS) report released on Friday, the weekly inflation, as measured by the Sensitive Price Indicator (SPI), exhibited a decline of 0.33 per cent during the week ending on October 19. 

    The Combined Index, as reported by PBS, stood at 277.11, down from 278.04 on October 19, 2023, with a notable contrast to the index of 213.74 recorded on October 27, 2022, a year ago.

    Among the 51 items monitored, the analysis indicates that the average prices of 14 items experienced an increase, 17 items saw a decrease, and 20 items remained stable. 

    Significant reductions were observed in the prices of chicken (10.19 per cent), onions (4.4 per cent), rice IRRI-6/9 (3.84 per cent), bananas (3.64 per cent), gur (3.4 per cent), pulse masoor (2.36 per cent), sugar (2.22 per cent), and mustard oil (2.17 per cent). 

    Conversely, notable price increases were recorded for tomatoes (20.81 per cent), potatoes (3.33 per cent), eggs (1.63 per cent), salt powdered (0.91 per cent), garlic (0.77 per cent), tea prepared (0.67 per cent), bread plain (0.56 per cent), and mutton (0.28 per cent).

    In a year-on-year comparison, the trend reveals an increase of 29.65 per cent in overall inflation, with substantial hikes in gas charges for Q1 (108.38 per cent), cigarettes (94.46 per cent), chilies powder (84.11 per cent), rice basmati broken (78.51 per cent), wheat flour (77.49 per cent), sugar (63.22 per cent), rice irri-6/9 (62.83 per cent), gents sponge chappal (58.05 per cent), gur (57.73 per cent), and salt powdered (54.84 per cent). 

    In contrast, price decreases are observed in tomatoes (31.90 per cent), onions (24.88 per cent), pulse gramme (5.82 per cent), mustard oil (4.16 per cent), and vegetable ghee (1 1 kg) (0.92 per cent).

  • PM Kakar calls for reduction in prices of essential items and services after petrol price cut 

    PM Kakar calls for reduction in prices of essential items and services after petrol price cut 

    On Monday, Caretaker Prime Minister (PM) Anwaar ul Haq Kakar called upon the chief ministers to take decisive action in lowering the prices of essential goods and services in response to a significant reduction in fuel costs. 

    In a momentous development, the government has implemented a substantial reduction of Rs40 in the price of petrol. 

    Prime Minister Anwaar ul Haq Kakar issued clear directives at both the federal and provincial levels, urging the implementation of a stringent price control mechanism. 

    PM Kakar stressed that all endeavours must be focused on ensuring that the benefits of reduced petroleum prices are passed on to the citizens of Pakistan. 

    The prime minister emphasised the unwavering enforcement of his directives. 

    Prior to this decision, the cost of petrol had seen a remarkable reduction of Rs40 per litre in Pakistan. 

    As per a notification issued by the Oil and Gas Regulatory Authority, the price of petrol now stands at Rs283.38 per litre, reflecting a reduction of Rs40 per litre. 

    Meanwhile, the price of high-speed diesel (HSD) has been lowered by Rs15 per litre to reach Rs303.18, while kerosene oil prices have witnessed a reduction of Rs22.43 per litre, now standing at Rs214.85. 

  • Weekly inflation increases to 27.5%, impacting household expenses

    Weekly inflation increases to 27.5%, impacting household expenses

    According to official data from the Pakistan Bureau of Statistics (PBS), the Sensitive Price Indicator (SPI) shows that inflation for the week ending on August 17 increased by 27.57 per cent compared to the same period last year. In simpler terms, things are getting more expensive.

    Looking at shorter periods, within a week, inflation went up by 0.78 per cent. This means prices are rising quickly and there’s no sign of them slowing down, which is worrying for both economists and consumers.

    Comparing some numbers, the overall price index was 275.57 on August 17, up from 273.43 on August 10 this year, and a significant increase from 216.02 on August 18 last year.

    Out of the things people buy, 32 items got pricier, 7 got cheaper, and 12 stayed the same. Among the things that became more expensive this week compared to a year ago were things like chillies powder (up 7.58 per cent), rice irri-6/9 (up 7.48 per cent), garlic (up 5.06 per cent), sugar (up 4.02 per cent), gur (up 3.23 per cent), and chicken (up 2.83 per cent). non-food items like diesel (up 7.29 per cent) and petrol (up 6.40 per cent) also got more expensive.

    On the flip side, the price of some things dropped. Tomatoes got 13.60 per cent cheaper, cooking oil (5 liters) became 1.65 per cent cheaper, and there were smaller drops in prices for things like vegetable ghee and wheat flour.

  • Pakistan’s inflation rate drops to 29.40% in June: Citizens’ purchasing power remains under pressure

    Pakistan’s inflation rate drops to 29.40% in June: Citizens’ purchasing power remains under pressure

    The Pakistan Bureau of Statistics (PBS) has released the latest data on the country’s inflation rate for June, indicating a slight decline compared to May. According to the report, the inflation rate for June stood at 29.40 per cent, showing an increase of 8.1 per cent compared to the same period last year.

    Although there was a marginal improvement from the inflation rate of 38 per cent reported in May, the country still faces significant challenges due to high inflation. This persistent inflationary environment continues to erode the purchasing power of citizens, affecting their ability to afford basic necessities.

    Analysing the data further, the report highlights that inflation in urban areas was recorded at 27.3 per cent, while agricultural communities experienced an even higher inflation rate of 32.4 per cent. These figures emphasise the vulnerability of rural areas and the agricultural sector to the rising cost of living.

    Comparing the current situation with that of the previous year, the Bureau of Statistics reveals a substantial year-on-year increase. In June of the previous year, the inflation rate was 21.3 per cent, further underscoring the severity of the current inflationary crisis.