Weekly inflation falls 0.98% as fuel prices drop

Aftab Maken

ISLAMABAD:  Pakistan’s weekly inflation, measured by the Sensitive Price Indicator (SPI), declined 0.98% for the week ended July 2, 2026, mainly due to sharp cuts in petroleum product prices, although tomato, onion and wheat flour prices recorded significant increases.

Weekly inflation eased by 0.98% during the week ended July 2, 2026, driven largely by substantial reductions in fuel prices, according to the latest Sensitive Price Indicator (SPI) released by the Pakistan Bureau of Statistics (PBS).

The SPI, which tracks weekly price movements of 51 essential commodities across 50 markets in 17 cities, showed that lower prices for petroleum products offset increases in several key food items.

Petrol recorded the steepest weekly decline, falling 19.77%, followed by diesel at 17.73% and liquefied petroleum gas (LPG) at 12.60%. Prices of chicken decreased by 1.97%, bananas by 1.44%, pulse moong by 1.29%, pulse mash by 0.84%, garlic by 0.63%, pulse gram by 0.23%, while mustard oil and sugar each declined by 0.21%.

Despite the overall decline in weekly inflation, prices of several essential food items surged sharply. Tomatoes registered the biggest increase, soaring 125.40% compared with the previous week. Onion prices rose 10.72%, potatoes increased 10.06%, eggs gained 8.32%, and wheat flour climbed 5.08%.

Other items that became more expensive included match boxes, which rose 0.96%, shirting 0.87%, washing soap 0.63%, fresh milk 0.49%, bread 0.47%, IRRI-6/9 rice 0.45%, and cigarettes 0.23%.

The PBS data showed that out of 51 commodities monitored during the week, prices of 23 items, or 45.10%, increased, while 11 items, representing 21.57%, recorded declines. Prices of the remaining 17 items, or 33.33%, remained unchanged.

On an annual basis, however, inflation remained elevated. The SPI increased 13.52% compared with the corresponding week last year.

Year-on-year data showed tomatoes recorded the largest increase of 238.72%, followed by onions at 80.96%, wheat flour at 68.47%, electricity charges for the first quarter at 49.14%, LPG at 44.08%, and gas charges for the first quarter at 29.85%.

Other notable annual increases were recorded in the prices of men’s sponge slippers, up 16.69%, mutton 16.06%, chili powder 15.20%, beef 12.89%, bananas 10.53%, and bread 9.18%.

In contrast, several commodities became cheaper compared with the same period last year. Potato prices fell 36.60%, pulse gram declined 22.11%, sugar dropped 19.42%, powdered salt fell 14.09%, while pulse masoor and eggs also registered double-digit annual declines, according to the PBS.

The weekly SPI is widely used by policymakers to monitor short-term inflationary trends and assess the impact of changes in food and energy prices on household budgets. The latest data reflects the immediate impact of the government’s recent reduction in petroleum prices, although continued volatility in vegetable prices remains a key inflationary concern.