Key Insights from the SPI Report for December 2024

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What is the Sensitive Price Index (SPI)?

The SPI is a weekly measure by the Pakistan Bureau of Statistics (PBS) that tracks price changes for 51 essential items, offering insights into inflation’s real-time impact on households across various income levels.

Key Highlights of the December 19, 2024 SPI Report

  • Week-on-Week Inflation:
  • SPI rose by 0.38%, driven by increases in key food items like tomatoes and cooking oil.
  • Year-on-Year Trend:
  • A 4.64% increase, largely influenced by soaring prices of tomatoes, ladies’ sandals, and pulses.

Week-on-Week Inflation: A 0.38% Increase

The weekly SPI climbed to 324.38 points, up from 323.14 points. Here’s a breakdown of the key contributors:

  • Price Increases:
  • Tomatoes (56.66%), firewood (1.57%), vegetable ghee (0.95%)
  • Price Declines:
  • Onions (4.16%), potatoes (3.83%), eggs (2.72%)

Year-on-Year Analysis: Major Price Trends

Compared to the same week in 2023, prices of several essentials skyrocketed:

  • Biggest Increases:
  • Tomatoes (95.54%), pulse gram (56.75%), and powdered milk (25.62%)
  • Significant Decreases:
  • Wheat flour (36.15%), chili powder (20%), and onions (13.74%)

Price Movements: Top Gainers and Decliners

Top Gainers:

  • Tomatoes: +56.66%
  • Garlic: +1.40%
  • Mustard Oil: +0.74%

Top Decliners:

  • Onions: -4.16%
  • Potatoes: -3.83%
  • Eggs: -2.72%

Impact on Different Income Groups

Inflation doesn’t affect all income groups equally. The SPI analysis revealed the following increases:

  • Up to Rs. 17,732: +0.68%
  • Above Rs. 44,175: +0.30%

How to Cope with Inflation: Practical Tips

  1. Plan Your Grocery Budget:
  2. Focus on items with stable or declining prices, such as wheat flour and pulses.
  3. Explore Alternatives:
  4. Substitute high-cost items like tomatoes with seasonal vegetables.
  5. Buy in Bulk:
  6. Take advantage of discounts on non-perishable items.
  7. Monitor Weekly Reports:
  8. Stay updated on SPI trends to anticipate changes.