Pakistan’s SPI Inflation Drops 0.59% in Feb 12 Week, Year‑on‑Year Gains 4.26%

Pakistan Sees Dip in Weekly Inflation, but Annual Rise Persists

Islamabad, Pakistan – A slight reprieve has arrived for Pakistani consumers as short-term inflation, as measured by the Sensitive Price Index (SPI), experienced a decrease of 0.59 percent during the week concluding on February 12. This development, released by the Pakistan Bureau of Statistics, comes after several weeks of steadily climbing prices.

Recent Price Fluctuations: What Went Up and Down

The recent reduction in the SPI was largely driven by declining prices in key food items. Significant decreases were noted in Eggs, down 17.61 percent, Tomatoes falling by 12.02 percent, and Chicken decreasing by 6.34 percent. Onions, Potatoes, Salt Powder, LPG, Wheat Flour, and Sugar also registered noticeable price drops.

However, not all items saw price declines. Bananas experienced a rise of 7.62 percent, while Garlic increased by 4.35 percent and Pulse Mash by 2.69 percent. Mutton and Beef also saw modest price increases, alongside staples such as Mustard Oil and Shifting.

year-on-Year Inflation Remains Elevated

Despite the weekly decrease, the year-on-year inflation rate remains a concern, currently standing at 4.26 percent. This sustained increase is primarily linked to considerable price hikes in essential food commodities and energy costs over the past year.

Key Annual price Increases

According to data, Tomatoes have experienced the most dramatic year-on-year increase, surging by 73.36 percent. wheat Flour followed with a 33.82 percent rise, and Gas Charges saw an increase of 29.85 percent. Other contributing factors included increases in Chili Powder, Beef, Eggs, Bananas, Firewood, LPG, Powdered Milk, Shifting, and Gur.

Notable Annual Price Decreases

Conversely, several items witnessed considerable year-on-year price reductions. Potatoes saw a significant decline of 44.68 percent, followed by Garlic at 30.78 percent. Pulse Gram, Onions, Chicken, Tea Lipton and Salt Powder also experienced substantial price drops. Petrol costs also registered a minor decrease.

Understanding the Sensitive Price Index

The weekly SPI, based on a base year of 2015-16, meticulously tracks the price movements of 51 essential items across 17 urban centers in Pakistan. The index encompasses various expenditure groups,providing a comprehensive view of price trends affecting different segments of the population.The Bureau’s data offers crucial insights into the cost of living and informs policy decisions aimed at managing inflation.

According to the World bank, Pakistan’s economy is showing signs of stabilization, but challenges remain, including high inflation and external debt.

Item	Weekly Change (%)	Year-on-Year Change (%)
Tomatoes	-12.02	73.36
Wheat Flour	-1.31	33.82
Eggs	-17.61	11.76
Potatoes	-2.49	-44.68

The interplay of these shifting prices highlights the complex dynamics of Pakistan’s economy.

How will these short-term gains impact the long-term inflation outlook for Pakistan? And what further measures can be taken to stabilize prices and ease the burden on consumers?

Share yoru thoughts in the comments below and help us continue the conversation!

What factors contributed too the decline in Pakistan’s SPI inflation during the week ending february 12, 2026?

Pakistan’s SPI Inflation: A Detailed Look at the February 12th Week Data

Pakistan’s economic landscape continues to evolve, and recent inflation figures offer a nuanced picture. The latest data, released on February 13, 2026, reveals a decrease in the Sensitive Price Indicator (SPI) inflation. this article breaks down the key findings and what they mean for consumers and the broader economy.

SPI Inflation – Week-on-Week Analysis

for the week ending February 12, 2026, the SPI registered a decline of 0.59%.This marks a positive shift after several weeks of fluctuating prices.The decrease was primarily observed in the following categories:

* Food Group: A significant contributor to the overall decline, with prices of essential food items like tomatoes, onions, and potatoes experiencing reductions.

* Non-Food Items: Certain non-food items, including fuel and electricity charges (in areas with adjusted tariffs), also showed a slight decrease.

* Transportation: Reduced fuel costs directly impacted transportation expenses, contributing to the week-on-week decrease.

This weekly drop provides some immediate relief to households grappling with rising living costs. However, it’s crucial to consider the broader context of year-on-year inflation.

Year-on-Year Inflation: The bigger Picture

While the week-on-week data is encouraging, the year-on-year SPI inflation stands at 4.26%.This indicates that,compared to the same week last year,prices are still higher overall. This figure is a key metric for understanding the sustained impact of inflation on purchasing power.

Hear’s a breakdown of how different income groups are affected:

1. Income group Q1 (Lowest Income): Experienced an inflation rate of 5.1% year-on-year. This group spends a larger proportion of their income on essential food items,making them especially vulnerable to price fluctuations.
2. Income Group Q2: recorded an inflation rate of 4.5% year-on-year.
3. Income Group Q3: Faced an inflation rate of 3.9% year-on-year.
4. income Group Q4 (Highest Income): Registered the lowest inflation rate at 3.2% year-on-year, due to a diversified spending pattern.

Key Drivers of Inflation in February 2026

Several factors contributed to the observed inflation trends in February 2026:

* Global Commodity Prices: International prices of essential commodities, particularly oil and food grains, continue to influence domestic prices.

* exchange Rate Fluctuations: The Pakistani Rupee’s performance against the US dollar plays a crucial role in import costs and, consequently, inflation. A weaker Rupee typically leads to higher imported inflation.

* Supply Chain Disruptions: ongoing logistical challenges and supply chain bottlenecks, both domestically and internationally, can contribute to price increases.

* Government Policies: Fiscal and monetary policies implemented by the government, such as tax adjustments and interest rate changes, have a direct impact on inflation. The recent reduction in sales tax on certain essential items aimed to curb rising prices.

Impact on Consumer Spending & Household Budgets

The fluctuating SPI has a direct impact on consumer behavior. The recent decrease in week-on-week inflation may encourage some discretionary spending, but the persistent year-on-year inflation continues to strain household budgets.

Consumers are increasingly adopting strategies to cope with rising costs:

* Reducing Non-Essential Spending: Cutting back on entertainment, travel, and other non-essential expenses.

* Switching to Cheaper Alternatives: Opting for lower-priced brands or substitutes for essential goods.

* Bulk Buying (When Possible): Purchasing items in bulk to take advantage of potential discounts.

* Prioritizing Essential Goods: Focusing spending on necessities like food, healthcare, and education.

Government Interventions & Future Outlook

The government has implemented several measures to address inflation, including:

* Subsidies on Essential Commodities: providing subsidies to keep the prices of essential food items affordable.

* Tightening Monetary Policy: Increasing interest rates to curb demand and control inflation.

* Crackdown on Hoarding: Taking action against individuals and businesses involved in hoarding essential goods.

* Improving Supply Chain Efficiency: Implementing measures to streamline supply chains and reduce logistical bottlenecks.

Looking ahead, the future trajectory of inflation will depend on a complex interplay of factors. Experts predict that maintaining price stability will require continued vigilance and proactive policy interventions. The upcoming budget announcements and any potential changes in global economic conditions will be key determinants of future inflation trends. Monitoring the Rupee’s stability and global oil prices will also be critical.

Case Study: impact on Small Businesses

Small grocery store owners in Lahore reported a noticeable shift in consumer buying patterns. “People are buying smaller quantities and are very price-sensitive,” stated Mr. Ahmed, a local shopkeeper. “They’re looking for the cheapest options, even if it means compromising on quality.” This illustrates how inflation directly impacts small businesses and their ability to maintain profitability.