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–Food and Fuel Costs Hit Households Hard
Aftab Maken
ISLAMABAD: Pakistan’s inflationary pressures intensified further during the week ending July 16, 2026, as the Sensitive Price Indicator (SPI) rose by 1.40% over the previous week, signaling another sharp increase in the cost of living for millions of households.
Data released by the Pakistan Bureau of Statistics (PBS) showed that soaring prices of food items and petroleum products remained the primary drivers of inflation, leaving consumers—particularly low and middle-income families—under mounting financial strain.
Among the steepest weekly increases, tomatoes surged by 22.79%, chicken by 14.66%, and LPG by 12.46%, significantly raising household food and cooking expenses. Transport and commuting costs also increased as diesel and petrol prices climbed by 4.41% and 4.40%, respectively. Other essential kitchen items including garlic, eggs, onions, and tea also registered notable price hikes.
The inflationary trend was broad-based, with prices of 27 out of 51 essential commodities monitored across 17 major cities increasing during the week. Only four items recorded any decline, offering little relief to consumers already grappling with persistent price shocks.
Annual Inflation Paints an Even Gloomier Picture
On a year-on-year basis, the SPI recorded a 13.09% increase, reflecting the sustained erosion of household purchasing power.
Some of the most alarming annual increases included:
- Tomatoes: 210.18%
- Onions: 75.93%
- Wheat flour: 71.81%
- Electricity charges: 49.14%
- LPG: 42.50%
These sharp increases have significantly raised the cost of basic necessities, making it increasingly difficult for ordinary Pakistanis to manage everyday expenses.
The burden has fallen most heavily on lower-income households. According to the PBS, the lowest consumption quintile (Q1) experienced a 13.63% year-on-year increase in SPI, indicating that the country’s poorest families continue to bear the greatest impact of rising prices.
Although prices of a few commodities—including bananas, pulse moong, sugar, and pulse masoor—declined marginally during the week, the reductions were too small to offset the substantial increases in essential food items, fuel, and utility costs that account for the largest share of household spending.
The latest SPI figures underscore the persistent inflation challenge confronting Pakistan’s economy. With food, energy, and transport costs continuing to rise, analysts warn that household budgets are likely to come under even greater pressure in the weeks ahead unless inflationary trends begin to ease.
