Decrease in SPI-based inflation by 0.35% on a monthly basis
For the week ended July 31, 2025, the Sensitive Price Index (SPI) in Islamabad, Pakistan, showed a weekly decrease of 0.35%, with the SPI recorded at 327.94 points, down from 329.09 points the previous week.
This modest weekly deflation was observed across various food and non-food items. Around 23.53% of items decreased in price, while 54.90% remained stable, showing a generally stabilizing price trend.
However, it's worth noting that the year-on-year (YoY) trend depicted an increase of 1.98% compared to the corresponding week of last year. This indicates a slight weekly deflation but continued inflation compared to the previous year.
In terms of specific food items, prices of pulse gram decreased by 0.58%, wheat flour by 0.59%, and potatoes by 0.73%. Moreover, prices of tomatoes decreased by 17.26% and 42.31%, and prices of chicken decreased by 4.76% and 11.71%. The price of LPG also decreased by 1.39% and 0.86%.
On the other hand, 11 items saw an increase in prices, including eggs, firewood, cooked beef, powdered milk, energy saver, garlic, cigarettes, mutton, beef, gur, and onions.
For context, the previous week ended July 24, 2025, experienced a significant weekly rise of 4.07% in SPI, driven by steep hikes in gas charges (+29.85%), electricity tariffs (+21.46%), and food items like tomatoes (+22.93%) and eggs (+3.96%). However, some food items like chicken, sugar, and onions recorded price drops in that week.
Year-on-year comparisons for the week ended July 24, 2025, showed an overall SPI inflation of 2.22%, with non-food items such as ladies' sandals (up 55.62%) and gas charges (up 29.85%) rising sharply, while onions and tomatoes saw significant price declines of -49.13% and -30.20% respectively.
Earlier weeks in July 2025 also showed rising short-term inflation, with SPI increases of 0.95% for the week ended July 10, led by increases in chicken (+22.61%), tomatoes (+13.45%), and onions (+6.25%).
In summary, while late July 2025 saw a sharp price surge in essential food and energy items, the latest available week ended July 31, 2025, showed a modest weekly price correction but maintained a moderate year-on-year inflation in Islamabad as per SPI data from Pakistan Bureau of Statistics.
Firewood and cigarettes, categories of non-food items, were among those that experienced an increase in prices compared to the previous week. Despite the weekly decrease in SPI, finance experts observe a continued inflation when considering the year-on-year trend.
