Pakistan (HRNW)- Pakistan has witnessed a record increase in short-term inflation, with the Consumer Price Index (CPI) rising by 14.52 percent year-on-year in the week ending May 14. Rising inflation has placed severe pressure on household budgets, while the public is blaming the government for failing to control prices.
According to data released by the Pakistan Bureau of Statistics, the Sensitive Price Index (SPI) also increased by 0.47 percent on a weekly basis, showing that inflationary pressure continues despite tight fiscal policy and an economic slowdown.
The data shows that petrol prices have increased by 64.23 percent year-on-year, while diesel has become 61.61 percent more expensive. Similarly, flour prices have risen by 57.56 percent, electricity bills for the lowest consumption category by 52.58 percent, LPG by 48.34 percent, onions by 50.06 percent, and tomatoes by 40.66 percent.
Experts say that ongoing tensions involving Israel, the United States, and Iran have increased global oil and shipping costs, which has impacted food and transport sectors in Pakistan.
Dr. Jazeeb Mumtaz, an economist at the Institute of Business Administration, said inflation is mainly driven by supply disruptions and rising transport costs. He added that higher fuel prices have increased freight charges, pushing up the cost of imported goods.
He further noted that public fear and hoarding due to regional uncertainty have also contributed to price increases, urging the government to reduce the Petroleum Development Levy to provide relief.
On a weekly basis, tomato prices increased by 22.13 percent, flour by 4.94 percent, diesel by 3.76 percent, and petrol by 3.73 percent. Although prices of chicken, eggs, and pulses saw slight declines, the relief was not enough to offset overall inflation.
Meanwhile, brokerage house Topline Securities has warned that Pakistan’s CPI could rise to 11–11.5 percent in May 2026, marking the highest level in 23 months.
Economists caution that if current trends in fuel, electricity, and import costs continue, living conditions for middle- and low-income households may worsen further in the coming months.
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