Pakistan's cost-of-living pressures persisted as the weekly inflation rate, measured by the Sensitive Price Indicator (SPI), recorded a 3.87% year-on-year increase for the week ending January 15, 2026. This uptick reflects sustained pressure on essential household budgets, even as prices for several key food items showed a welcome decline.
Essential Staples and Energy Drive Annual Inflation
The official data, compiled from 50 markets across 17 cities, reveals that the annual inflation was largely fueled by sharp increases in staple foods and energy. Wheat flour prices skyrocketed by 34.90% compared to the same week last year, marking the steepest rise among 51 monitored items. This was closely followed by a 29.85% surge in gas charges for the lowest consumption bracket (Q1), highlighting a disproportionate burden on lower-income families.
Other essential items that became significantly more expensive over the year include eggs (up 20.85%), beef (12.83%), chilli powder (12.56%), and sugar (10.43%). Firewood, gur, powdered milk, bananas, and certain fabrics also registered notable annual increases.
Vegetables and Pulses Provide Consumer Relief
In a contrasting trend, several vegetables and pulses provided much-needed relief to household budgets. Potato prices plunged by 46.60% on a year-on-year basis, while onions became cheaper by 37.30% and garlic by 35.91%. Tomato prices fell 32.88%, and pulse gram saw a 31.03% decline.
Other items showing annual decreases included Lipton tea, pulse mash, pulse masoor, and fuel. Diesel and petrol prices were down 1.27% and 0.95%, respectively, offering some respite from last year's higher fuel costs.
Short-Term Pressures and Income Disparity
On a week-on-week basis, the SPI increased by a modest 0.25%. However, this short-term rise was driven by some dramatic jumps: tomato prices soared 27.64% in just one week, followed by LPG (7.03%) and wheat flour (3.26%). Eggs, bananas, and chilli powder also became more expensive compared to the previous week.
An income-wise analysis of the data paints a concerning picture of inequality. The impact of year-on-year inflation varied significantly across different income groups. While the highest-income group (Q5) experienced a 3.16% increase, the second quintile (Q2) faced a 4.52% rise, underscoring the persistent and heightened cost-of-living pressures on middle- and lower-income segments of society.
During the monitored week, price movements were mixed: 13 items increased, 13 decreased, and 25 remained unchanged. This dynamic suggests that while some inflationary challenges are easing, core pressures on essentials continue to strain Pakistani households.
