Higher potatoes, wheat flour, milk prices push SPI up
ISLAMABAD: The increase in prices of potatoes, wheat flour and fresh milk during the previous week has led to an increase in sensitive price index (SPI) mainly for the lowest income group.
The combined SPI for the week ending on Thursday (November 15, 2012), improved marginally by 0.06 percent as compared to the previous week, however the lowest income group earning up to Rs 8,000 per month, faced the wrath of weekly based inflation with an increase of 0.10 percent as compared to the previous week. “The major impact of rising inflation is on the lowest income group because this category spends more of their income on food and kitchen-related item,” said an economist at the planning commission.
Out of 30 items that registered increase in prices in the said period, 25 are related the kitchen, which include food and fuel used for cooking. However, the inflationary pressure is seen easing as the income ladder increases, and the income group earning between Rs 8,001 and Rs 12,000 per month saw the rise in SPI by 0.08 percent. The SPI for mid-income group earning Rs 12,001 to Rs 18,000 per month increased by 0.07 percent, for Rs 18,001 to Rs 35,000 per month the weekly inflation improved by 0.05 percent, whereas the inflationary pressure was almost negligible at 0.04 percent against previous week for the high income group earning above Rs 35,000 per month.
The weekly based SPI is calculated based on data covering 17 urban centres for 53 essential items for all income groups and combined category.
The data collected by the Pakistan Bureau of Statistics (PBS) said that 30 items witnessed increase in prices in the said week which are potatoes, cooked beef plate, tea, cooked dal plate, long cloth, firewood, rice irri-6, georgette cloth, washed masoor pulse, wheat, shirting, lawn cloth, cigarettes, wheat flour, tea prepared cup, washed moong pulse, sugar, plain bread, liquefied petroleum gas, salt powdered loose, curd, beef, fresh milk, washed mash pulse, rice basmati broken, farm chicken eggs, kerosene, mustard oil, mutton and jaggery.
Seven items that witnessed a decline in prices are tomatoes, onions, bananas, live farm chicken, red loose chili powder, washed gram pulse and loose vegetable ghee.
The prices of 16 items remained stable during the week including electric charges, gas charges energy savor, petrol, diesel, local telephone calls, milk powdered, cooking oil, vegetable ghee, garlic, gents sandal spring chappal ladies sandal, washing soap, match box, and bath soap.
Courtesy: Daily Times