Pakistan’s Sensitive Price Index-based inflation has experienced a year-on-year drop of 0.9 per cent for the first time in almost seven years, marking a significant change for the period ending March 6, 2025.
The fall in the SPI inflation is largely driven by declining costs of several essential commodities. Onion prices fell by 6 per cent, branded tea by 4 per cent, garlic by 4 per cent, tomatoes by 4 per cent, and gram pulse by 3 per cent. Similarly, mash pulse and potatoes also recorded a 3 per cent decrease, diesel dropped by 2 per cent, masoor pulse by 2 per cent, and petrol by 0.24 per cent.
On a week-to-week basis, the SPI inflation saw a marginal decline of 0.09 per cent, suggesting a slight easing of price pressures for consumers.
This downturn in the index indicates a rare period of deflation in essential goods, which could bring temporary relief to households struggling with years of inflation. However, experts point out that sustained price reductions will depend on broader economic conditions, policy decisions, and factors affecting supply chains and energy prices.
It’s important to note, though, that this news comes amidst rising prices of chicken and meat in cities like Rawalpindi and Islamabad. Sellers have been charging above government-fixed rates, yet despite this, the Pakistan Bureau of Statistics (PBS) still reports a decrease in overall inflation.
