Pakistan's inflation tracker for essential goods has recorded a modest increase for the latest week, indicating persistent pressure on household budgets. The Sensitive Price Indicator (SPI), which monitors the prices of 51 essential items across 17 urban centers, registered a 0.25 percent increase for the week that concluded on January 16, 2026.
Key Drivers of the Weekly Price Hike
The data, released by the Pakistan Bureau of Statistics (PBS), reveals that the rise was primarily fueled by escalating costs in the food category. Among the items that became significantly more expensive, tomatoes saw the highest jump at 9.68 percent. This was closely followed by an increase in onion prices, which rose by 4.47 percent. Other notable contributors to the weekly inflation figure included higher prices for garlic, chicken, and wheat flour.
However, the weekly snapshot was not uniformly negative. The PBS report also highlighted several items that experienced a decline in their average prices during the same period. This provided some relief, albeit limited, to consumers. The price of bananas decreased by 3.31 percent, while eggs became cheaper by 2.14 percent. Additionally, costs for mustard oil, vegetable ghee, and cooking oil also saw reductions.
Year-on-Year Inflation Remains in Double Digits
While the weekly change provides a short-term view, the broader annual picture continues to reflect significant inflationary pressures. Compared to the same week in the previous year, the SPI inflation rate stands at a substantial 20.87 percent. This year-on-year figure underscores the ongoing challenge of high inflation that has impacted the Pakistani economy and the purchasing power of its citizens over a sustained period.
The Sensitive Price Indicator is a critical tool for gauging short-term price trends of everyday necessities. Its weekly fluctuations are closely monitored by policymakers, economists, and the public alike, as they offer an immediate pulse on the cost of living. The latest data point of a 0.25 percent weekly rise suggests that while some price corrections are occurring, the overall basket of essential goods continues to become more expensive, maintaining financial strain on average families.
Analysis and Economic Context
The mixed bag of price movements—with sharp increases in some vegetables and decreases in others—points to the volatile nature of food supply chains, which can be affected by seasonal factors, transportation costs, and market supply dynamics. The persistent double-digit annual inflation rate highlights the deeper, structural economic challenges that extend beyond weekly volatility.
For the common consumer, this data translates to continued careful budgeting, as staple food items remain a major component of monthly expenditure. The government's economic policies, particularly those related to agriculture, imports, and monetary measures, will be crucial in determining whether this trend of weekly increases can be subdued and the high year-on-year inflation rate can be brought down to more manageable levels in the coming months.
