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