Pakistan's weekly inflation records slight decrease

The inflation measured through the Sensitive Price Index (SPI) edged up recording a slight decrease of 0.10 percent, data released by the Pakistan Bureau of Statistics (PBS) showed on Saturday.

However, the SPI showed an increase of 16.69 percent year-on-year in the week ending August 23.

On the other hand, the government has approved a sugar export recommendation, which is anticipated to increase consumer retail prices of sweeteners. The sugar is being sold at Rs160 per kilogramme in the country.

According to the current SPI, prices of tomatoes cut (21.96 pc), wheat flour (2.77pc), Bananas (2.08pc), onions (1.70pc), sugar (1.43pc), chicken (1.25pc), pulse masoor (1pc) and bread (0.61pc) week-on-week. 

The items showed an increase in prices are eggs (6.10pc), pulse gram (6.05pc), potatoes (2.41pc), cooked daal (0.89pc), cooked beef (0.74pc), mustard oil (0.63pc), beef (0.47pc), shirting (0.43pc), milk fresh (0.39pc) and LPG (0.16pc).

However, the gas charges increased (570pc) year-on-year, onions (79.51pc), pulse gram (51.34pc), tomatoes (28.10pc), powdered milk (26.14) pc, beef (23.89 pc), pulse moong (23.88pc), garlic (22.84pc), and salt powder (21.36).

Experts attributed the slowdown in short-term inflation to the market expectations that the central bank would make a third consecutive decline in the key policy rate scheduled to be announced on September 12.

According to the market's expectations, the State Bank of Pakistan (SBP) would slash the policy rate by 1 to 1.5% or 100 to 150 basis points. 

Currently, the policy rate stands at 19.5%, following a cumulative reduction of 250 basis points in the past two announcements