Perishable Goods Surge Powers Inflation by 5%, Highlighting Impact on Consumer Prices

September 6, 2025

Islamabad – Pakistan is experiencing a sustained period of rising prices, as indicated by the latest Sensitive Price Index (SPI) data. The SPI, a key measure of short-term inflation, increased by 5.07 percent year-on-year in the week ending September 4th. This marks the seventh consecutive week of upward price movement, raising concerns for consumers and policymakers alike.

Rising Food Costs drive Inflation

The primary driver of this inflationary trend is the escalating cost of essential food items. Sharp increases have been observed in the retail prices of tomatoes, onions, potatoes, rice, and chicken. Liquefied Petroleum Gas (LPG) and wheat flour have also contributed considerably to the growing financial strain on households. Weekly inflation has risen by 1.29 percent, further compounding the issue.

Tomatoes are at the forefront of the price surge, currently selling for as much as Rs300 per kilogram in Islamabad.Sugar prices have also seen a ample increase, ranging from Rs195 to Rs200 per kilogram. Meat prices are exhibiting a persistent upward trend, adding to the overall cost of living.

A Volatile Inflationary Period

While the overall short-term inflation rate appears somewhat tempered by last year’s exceptionally high base, the sharp increase in perishable goods and crucial essentials has reversed the earlier stability seen this year. The SPI previously experienced a decline in March, following 11 consecutive weeks of inflation exceeding 40 percent, beginning on November 8, 2023. However, after briefly easing to 24.4 percent in late August, inflation dramatically surged past the 40 percent mark again by mid-November 2023.

Weekly Price Fluctuations

According to the latest data, the most significant week-on-week price increases were recorded for tomatoes (46.03 percent), wheat flour (25.41 percent), onions (8.57 percent), broken basmati rice (2.62 percent), garlic (2.04 percent), potatoes (1.38 percent), moong pulse (1.29 percent), bread (1.19 percent), LPG (0.88 percent), and shirting (0.27 percent). Conversely, some commodities experienced price decreases, including bananas (3.86 percent), diesel (0.91 percent), sugar (0.13 percent), and mustard oil (0.10 percent).

Did you Know? Pakistan’s inflation rates are particularly sensitive to global commodity prices, seasonal variations in agricultural production, and government policies related to subsidies and taxation.

Year-on-Year Price Changes

Examining annual price changes reveals a more complete picture of the inflationary pressures. Year-on-year,tomatoes have surged by an astounding 83.45 percent, while ladies’ sandals have increased by 55.62 percent.Wheat flour has risen by 30.27 percent, and gas charges for the first quarter have climbed by 29.85 percent. Sugar prices are up 27.43 percent, with considerable increases also observed for gur (13.21 percent), beef (13.15 percent), moong pulse (12.99 percent), firewood (11.47 percent), vegetable ghee (11.36 percent), and chicken (10.89 percent).

However, not all prices have increased.Onions have fallen by 47 percent, followed by garlic (25.50 percent), mash pulse (22.93 percent), potatoes (19.25 percent), gram pulse (19.04 percent), electricity charges for the first quarter (18.12 percent),Lipton tea (17.93 percent), masoor pulse (6.07 percent), IRRI-6/9 rice (4.60 percent), and LPG (3.71 percent). The SPI is calculated based on 51 essential items collected from 50 markets across 17 cities, and the latest assessment shows increases in 23 items, decreases in four, and no change in 24.

Commodity	Weekly Price Change (%)	Year-on-Year Price Change (%)
Tomatoes	46.03%	83.45%
Wheat Flour	25.41%	30.27%
Onions	8.57%	-47.00%
Sugar	-0.13%	27.43%
Chicken	N/A	10.89%

Pro Tip: To mitigate the impact of rising food prices, consider exploring local markets for potentially lower rates and adjusting meal plans to prioritize affordable alternatives.

Looking Ahead

The consistent rise in the SPI underscores the economic challenges facing pakistan.Monitoring these trends and implementing targeted policies will be crucial to stabilizing prices and protecting the purchasing power of consumers.The government’s response to these inflationary pressures will be a key factor in the country’s economic outlook.

Understanding Inflation in Pakistan

Inflation in Pakistan is a complex issue influenced by a multitude of factors, including global commodity prices, exchange rate fluctuations, domestic supply chain disruptions, and government fiscal policies. Understanding these dynamics is essential for comprehending the current economic situation and anticipating future trends. Historically, Pakistan has experienced periods of high inflation, frequently enough linked to political instability, economic crises, and external shocks.

The SPI is just one of several indicators used to measure inflation in Pakistan. Others include the Consumer Price Index (CPI), which tracks changes in the prices of a wider basket of goods and services, and the Wholesale Price Index (WPI), which focuses on price changes at the wholesale level. Each index provides a different outlook on the inflationary landscape,and policymakers often consider all three when making economic decisions.

Frequently Asked Questions About Pakistan’s Inflation

• What is the SPI and why is it vital? The SPI (Sensitive Price Index) measures the weekly price changes of 51 essential items, providing a short-term gauge of inflation’s impact on household budgets.
• What are the main causes of inflation in Pakistan? Key drivers include global commodity prices, exchange rate fluctuations, supply chain issues, and government policies.
• How does rising inflation affect consumers? Rising inflation erodes purchasing power, meaning people can buy less with the same amount of money.
• What steps can the government take to control inflation? Measures include tightening monetary policy, reducing government spending, and improving supply chain efficiency.
• Is the current inflation rate expected to continue? The future trajectory of inflation depends on various factors, including global economic conditions and domestic policy interventions.

What impact do you think these price increases will have on low-income families in Pakistan? How can the government effectively address this ongoing inflation crisis?

Share your thoughts in the comments below!

How might ongoing geopolitical instability further exacerbate food price inflation, particularly concerning perishable goods?

The Rising Cost of Fresh Food: A Deep Dive

A important jump in the price of perishable goods – encompassing fresh produce, dairy, meat, and seafood – is now the primary driver of a 5% surge in overall inflation. This isn’t a broad economic trend; it’s hitting grocery bills now,forcing consumers to reassess shopping habits and budgets. Understanding the factors behind this increase, and its ripple effects, is crucial for both households and businesses. We’ll explore the key contributors, the specific items experiencing the steepest price hikes, and strategies for mitigating the impact on your wallet. This analysis focuses on food price inflation and its direct consequences.

Key Drivers Behind the Perishable Goods Inflation

Several interconnected factors are fueling this increase in grocery inflation:

Climate Change & Extreme Weather: Unpredictable weather patterns – droughts, floods, and heatwaves – are devastating crop yields globally. This directly impacts the supply of fruits, vegetables, and grains. Recent droughts in Southern Europe, for example, have considerably reduced olive oil and tomato production, leading to price increases.

Supply Chain Disruptions: While easing from pandemic peaks, supply chain issues persist. Transportation costs, particularly for refrigerated goods, remain elevated. Labor shortages in farming and processing also contribute to bottlenecks.

Increased Input Costs: Farmers are facing higher costs for essential inputs like fertilizers, pesticides, animal feed, and energy. These costs are inevitably passed on to consumers.The war in Ukraine has exacerbated fertilizer shortages, impacting global agricultural production.

Animal Disease Outbreaks: Outbreaks of avian flu and swine fever have led to culling of livestock, reducing meat and poultry supplies and driving up prices. This is a significant factor in meat inflation.

Seasonal Factors: While always present,seasonal variations are becoming more pronounced due to climate change,leading to greater price volatility for certain produce items.

Which Perishable Goods Are Seeing the Biggest Price Increases?

Data from recent consumer price index reports reveals the following trends:

Eggs: Prices have seen dramatic fluctuations, driven by avian flu outbreaks and increased feed costs.

Dairy Products: Milk, cheese, and butter are all experiencing significant price increases, linked to higher feed costs and supply chain challenges.

Fresh Vegetables: Lettuce, tomatoes, and peppers are particularly vulnerable to weather-related supply disruptions.

Fresh Fruits: Berries, citrus fruits, and apples are all becoming more expensive due to climate impacts and transportation costs.

Meat & Poultry: Beef, pork, and chicken prices are all rising, influenced by animal disease outbreaks and feed costs. Poultry inflation is particularly noticeable.

Seafood: Supply chain disruptions and increased fuel costs are impacting the price of fish and shellfish.

The Impact on Consumer Spending & Behavior

The 5% surge in food costs is forcing consumers to make arduous choices:

1. Trading Down: Consumers are switching to cheaper brands or opting for less expensive cuts of meat.
2. Reducing Consumption: Many are simply buying less of certain perishable items, particularly those with the highest price increases.
3. Changing Shopping Habits: Increased focus on sales, coupons, and bulk buying to mitigate price increases.
4. Food Waste Reduction: A growing awareness of the need to minimize food waste to maximize value.
5. Home Gardening: More people are turning to home gardening to supplement their grocery purchases.

Regional Variations in Perishable Goods Inflation

the impact of these price increases isn’t uniform across the country.Regions heavily reliant on imported produce, or those directly affected by extreme weather events, are experiencing more significant inflation. For example, coastal areas may see higher seafood price increases due to transportation costs and supply disruptions.

Wales and the Deposit Return Scheme: A Related Consideration

while not directly impacting perishable goods prices, the upcoming Deposit Return Scheme for Wales (detailed at https://www.gov.wales/deposit-return-scheme-wales-html) will add a small cost to beverage purchases.This scheme, launching in 2025, aims to improve recycling rates but represents another factor influencing household budgets.It’s crucial to note this is separate from the current inflation rate driven by food.

Strategies for Mitigating the Impact of Food Inflation

Here are some practical tips for managing rising grocery costs:

Meal Planning: Plan your meals for the week based on sales and seasonal produce.

Shop Your Pantry First: Utilize ingredients you already have on hand before buying more.

Embrace Frozen Foods: Frozen fruits and vegetables are often cheaper and just as nutritious as fresh.

Reduce Food waste: Store food properly, use leftovers creatively, and compost food scraps.

Consider Plant-Based Meals: Incorporating more plant-based meals into your diet can be a cost-effective way to reduce your grocery bill.

Compare Prices: Check prices at different stores and utilize price comparison apps.

Buy in Bulk (When Sensible): For non-perishable items, buying in bulk can save money.

Looking Ahead: Forecasting Future Trends

Experts predict that food price inflation will remain elevated in the near term, although the rate of increase may slow down. The ongoing geopolitical instability,