Soaring Food And Ladies Footwear Prices Drive Pakistan’s Latest Inflation Surge

According to the Sensitive Price Indicator (SPI) data released on November 21, the past week saw a consistent rise in short-term inflation, mainly due to rising food prices

Pakistan's inflation rate for the current week has risen by 0.67 per cent, reaching an 18-week high, primarily driven by increases in food prices and ladies' footwear. Despite this surge, the government has refused to accept responsibility, instead blaming mediators for the price hikes.

According to the Sensitive Price Indicator (SPI) data released on November 21, the past week saw a consistent rise in short-term inflation, mainly due to rising food prices. This marked the highest increase since July 18 of this year. The Pakistan Bureau of Statistics (PBS) reported that the weekly inflation rate has climbed to 4.92 per cent compared to the same period last year.

Reports indicate that the main contributor to the rise in inflation was the sharp increase in ladies' footwear prices, which surged by 55.62 per cent this week. Additionally, food prices saw a significant jump, further contributing to the broader inflationary trend. The Trade Development Authority of Pakistan (TDAP), which oversees the country's trade promotion, notes that Pakistan's annual footwear demand is around 600 million pairs, with women purchasing an average of 4-6 pairs each year.

Essential food items also experienced sharp price hikes: tomatoes increased by 20.72 per cent, potatoes rose by 3.8 per cent, garlic surged by 3.44 per cent, and egg prices went up by 3.16 per cent, according to PBS data. Overall, essential commodities saw an increase of at least 2.30 per cent.

In response to the rising prices, the federal government expressed surprise, attributing the increase in food prices to mediators. Officials argued that the surge in local prices is unjustifiable, especially given the downward trend in global markets.

"There can be several factors that are contributing to the fluctuation in commodity prices, including reduction in vegetable production, surge in population and inadequate storage capacity of perishable goods. Also, the export of crops having less-than-estimated production, such as onions and sugar, has also been cited as a reason for rising prices," said economist Salman Siddiqui, reported PTI.