According to official data released on Friday, short-term inflation rose 29.65% year on year in the week ending Oct 27 despite a significant drop in petroleum product prices.
Inflation Rate Has Deceased
According to the Sensitive Price Index (SPI), the rate has decelerated below 30% after a five-week steady increase.
The SPI fell 0.33 percent week on week, owing primarily to a drop in gasoline prices.
The caretaker government slashed the prices of petroleum products significantly last week.
Because of the decrease in transportation costs, the impact of this decline was visible in vegetable prices.
Petrol Prices To Increase From Nov 1
Petrol prices are expected to rise slightly in the coming review, by around Rs. 2.43 per litre.
Diesel prices, on the other hand, are expected to fall by Rs. 5.65 per litre. This follows a recent increase in global oil prices caused by the Middle East crisis.
14 of the 51 items in the SPI basket saw price increases, while 17 saw price decreases. There were 20 items whose prices remained unchanged from the previous week.
SPI Basket
During the week under review, the items whose prices increased the most over the same week a year ago were gas charges for Q1 (108.38pc), cigarettes (94.46pc), chillies powder (84.11pc), rice basmati broken (78.51pc), wheat flour (77.49pc), sugar (63.22pc), rice Irri-6/9 (62.83pc), gents sponge chappal (58.05pc), gur (57.73pc) and salt powdered (54.84pc).
The biggest increases week-on-week were seen in the prices of tomatoes (20.81pc), potatoes (3.33pc), eggs (1.63pc), salt powdered (0.91pc), garlic (0.77pc), tea prepared (0.67pc), bread plain (0.56pc) and mutton (0.28pc).
The SPI remained above 45 percent for three weeks in May after reaching an all-time high of 48.35 percent on May 4.
Depreciation of Rupee Directly Affected Price Increase
The depreciation of the rupee, rising petrol prices, sales tax, gas bills, and electricity bills are all major contributors to this inflationary trend.
Meanwhile, on a week-on-week basis, the prices of chicken dropped by (10.19pc), onions (4.4pc), rice IRRI-6/9 (3.84pc), bananas (3.64pc), gur (3.4pc), pulse masoor (2.36pc), sugar (2.22pc), and mustard oil (2.17pc).
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