Short-term inflation hits households hard

ISLAMABAD: Short-term inflation, measured through the Sensitive Price Index (SPI), increased by 4.70 per cent year-on-year in the week ending 5 March, reflecting higher retail prices for petroleum products.

Short-term inflation has persistently risen for the 31st consecutive week, indicating ongoing pressure on household budgets. The continuous increase is mainly caused by sharp rises in the prices of vegetables and other perishable foods, along with higher electricity tariffs and petrol prices.

On a week-on-week basis, the SPI recorded a marginal increase of 0.37pc compared with the previous week, mainly due to higher prices of petrol, diesel, and liquefied petroleum gas, according to official data released on Friday.

Short-term inflation is expected to increase further due to the ongoing conflict in the Middle East, which is disrupting the supply of essential commodities, especially petroleum products. The uncertainty in global energy markets has raised concerns about higher import costs and supply limitations, which could put additional pressure on domestic prices.

Petroleum, food drive price hike for 31st week

Petroleum, food drive price hike for 31st week

The government has already indicated that an increase in petroleum product prices is likely, warning that supply shortages may also emerge in the country if the situation persists. According to officials, a prolonged conflict in the........

© Dawn Business