High Inflation Breaks 3-Year Record.

ISLAMABAD -- Weekly inflation measured by the Sensitive Price Index (SPI) has increased by 3.38 percent during the previous week mainly due to the massive increase in prices of petroleum products and food prices.

The increase in the weekly inflation is the highest in last three years. The SPI-based inflation registered an increase of 3.38 percent during the week ended on June 16, according to the latest data of Pakistan Bureau of Statistics (PBS) released on Friday.

The SPI was recorded at 189.07 points during the week ended on June 16 as compared to 182.88 point during the week ended on June 10. On annual basis, the weekly inflation has enhanced by 27.82 percent.

The inflation has shown massive increase following the government's decision to increase oil prices by Rs60 per litre in first two phases. Meanwhile, inflation could further enhance as the government has once again increase the petroleum products prices by up to Rs59 per litre in the third phase to revive IMF extended fund facility programme. The impact of the increase of Rs59 per litre of petroleum products will be further visible in next week's SPI calculations, which will further go up.

On the other hand, the currency is also depreciating from last several weeks, which is another reason behind massive increase in inflation rate. The government is also mulling to enhance electricity and gas prices for revival of stalled IMF programme. It is projected that inflation would balloon in the weeks to come. The government project a modest inflationary annual target of 11.5 percent for the next fiscal year 2022-23.

The Sensitive Price Indicator for the lowest consumption group up to Rs17,732 witnessed 2.85 percent increase and went up to 194.44 points this week from 189.06 points in last week. Meanwhile, the SPI for the consumption groups from Rs17,732-22,888; Rs22,889-29,517; Rs29,518-44,175 and above Rs 44,175 also increased by 3.45 percent, 3.10 percent, 3.12 percent and 3.10 percent respectively.

During the week, out of 51 items, prices of 36 (70.59 percent) items increased, 06 (11.76 percent) items decreased and 09 (17.65 percent) items remained...