The SPI for the total consumption group has significantly decreased by 0.25 percent.
The Sensitive Price Indicator (SPI), a tool used by the Pakistan Bureau of Statistics (PBS) to measure the country’s weekly inflation, has recently revealed interesting patterns that paint a dynamic picture of consumer spending.
The SPI for the total consumption group has significantly decreased by 0.25 percent.
Looking more closely, the SPI for the aforementioned consumption group was 279,18 points this week as opposed to the marginally higher 278,87 points recorded the week before.
Surprisingly, the SPI for the total consumption group showed an impressive 26.25 percent increase when compared to data from the same week the year prior.
The SPI, calculated with 2015–16 as the base year, tracks the prices of 51 essential items across different expenditure categories in a wide range of 17 urban centres.
The SPI for the lowest consumption group, with an income threshold of up to Rs17,732, experienced a slight 0.21% decline, settling at 284.66 points, down from the previous week’s 285.27 points, according to a further breakdown of the data.
As you move up the income scale, you’ll notice that the consumption groups with incomes between Rs 17,732 and Rs 22,889, Rs 29,517 and Rs 44,175 as well as above Rs 44,175 all experienced fractional decreases of 0.23%, 0.25%, 0.27%, and 0.27%, respectively.
Out of the 51 items under observation, 24 (47.06%) saw price increases during the week, compared to 8 (15.69%) price decreases and 19 (37.25%) stable prices.
The price change spectrum’s top performers include sugar, which saw a notable drop of 9.11%, chicken, which saw a reduction of 5.47%, and eggs, which saw a drop of 2.79%. The effects of these price changes on household budgets and consumer behaviour can be significant.
On the other hand, notable increases were noted for items like tomatoes (4.29%), garlic (4.21%), and bread (3.92%). These price increases may have an impact on the overall economy, influencing consumer decisions and the inflation rate.
The overall picture reveals significant year-over-year differences. For instance, the price of tomatoes fell by an astounding 24.55%, which is good news for consumers. Contrarily, the price of wheat flour increased by an astounding 114.37%, highlighting the complicated factors at work in the agriculture and food industries.
Electricity prices increased by 21.96% in the first quarter, highlighting the difficulties that both households and businesses are facing. Cigarettes, on the other hand, experienced a sharp 98.11% price increase, reflecting the shifting market dynamics.
When it comes to food commodities, sugar saw a startling 90.27% annual price increase, while the cost of powdered milk increased by 43.05%. These variations have broader effects on the nation’s dietary preferences and sense of security regarding food.
