Weekly data of SPI exhibit that downward trend started from week ending on April 14, 2005 when the SPI was recorded (14.04 percent). During week ending on August 17, it came down to 7.75 percent. After that, it again started climbing and is still on the rise.
The government decision to duty-free import five kitchen items ie, meat, livestock, onion, garlic and potatoes played a vital role in slashing their prices but its impact lasted for a short while, after which prices are increasing again.
However, the significant feature of the weekly bulletin of Federal Bureau of Statistics (FBS) was that year-on-year the rise in the prices of some necessities and kitchen items was exorbitant. These items are potatoes, diesel, petrol, kerosene oil, LPG, sugar, firewood, gur, and all kinds of pulses, which hit the low income groups.
The bulletin on SPI, based on data of about 53 items from 17 centres, showed that 13 items registered increase, 15 items showed decline, and prices of 25 items remained unchanged.
However, detailed examination showed that, Y-on-Y basis, eight items were dearer by double digits. These included moong pulse by 42 percent, sugar 30 percent, mash pulse 24 percent, firewood 19 percent, potatoes 14 percent, egg farm 14 percent, latha 10 percent and curd increased by 10 percent.
Among these items, in a short span of one week the prices of sugar increased by 1.74 percent, tomatoes 1.73 percent, latha 1.32 percent and firewood increased by 1.13 percent over last week.
The FBS figures further suggested that though prices of 25 items posted no change during the week, compared to the corresponding week of last year, several items are now costlier. For example, petrol is dearer by 52 percent, diesel 52 percent, kerosene 34 percent, match box 22 percent, ladies sandal (Bata) 20 percent, fresh milk 14 percent, plain bread 13 percent, tea prepared 10 percent, and salt by 10 percent.
The bulletin further indicates that though the prices of 15 items decreased, compared to the prices of corresponding week of last year, items which showed increase in their prices were gur, which is dearer by 68 percent, garlic 30 percent, bananas 20 percent, chicken farm 18 percent, LPG (11 kg cylinder) 14 percent, and masoor pulse by 11 percent.
The State Bank of Pakistan (SBP) is doing its best to control price hike spiral through tightening its monetary policy. Besides, the government is also taking some regulatory decisions like import of duty-free kitchen goods. However, the rising trend in the prices of essential items is still a challenge to the economic managers.