Weekly inflation jumps by over 28pc – Business

Inflation as measured by the Sensitive Price Indicator (SPI) decreased 0.57 percent on a weekly basis during the period ending October 13 due to a slight decrease in energy prices, according to data released by the Pakistan Bureau of Statistics (PBS) on Friday.

In year-on-year terms, inflation registered an increase of 28.44% driven by food and energy prices higher than ever. The SPI posted four weekly declines since September 8, while rising in two weeks.

Prior to this, the highest recorded year over year increase in the SPI was 45.50% for the week ending September 1 and 44.58% for the week ending August 25, 42.70% for the week that ended September 8 and 42.31% for the week ending September 8. the week ending August 18.

The October World Bank report predicted that average consumer price index (CPI) inflation in Pakistan will rise to an average of 23% in FY23 from 12.2% in FY22 due to higher prices. domestic power surges, flood disruptions and the weaker rupee.

SPI decreases 0.57% week over week

The SBP has been tightening its monetary policy to contain rising inflation and the rapid depreciation of the rupee. Since September 2021, the central bank has raised the policy rate by a cumulative 800 bps to reach 15%, the highest rate since the 2008 global financial crisis.

Skyrocketing vegetable prices due to damage to standing crops and a massive increase in electricity rates have also contributed to the price rise. Damage to standing crops will drive up vegetable prices in the coming weeks.

The International Monetary Fund said in its country staff report that average Consumer Price Index (CPI) inflation was expected to rise to 20 percent in the current fiscal year, while core inflation would also remain elevated due to to higher energy prices and the fall of the rupee.

The PDM government has projected a modest annual inflation target of 11.5% for the current fiscal year.

The SPI monitors the prices of 51 essential items based on a survey of 50 markets in 17 cities across the country. During the week under review, the prices of 18 of the 51 items increased, 17 decreased, and 16 remained flat.

In the WoW food base, the prices of tomatoes (13.51pc), eggs (2.12pc), masoor beans (2.07pc), onions (1.57pc), beans (1.39pc) and bananas (1.36pc). pc) decreased. In non-food items, LPG fell (2.74pc).

On the other hand, there was an increase in the prices of matchboxes (5.65pc), powdered milk (3.82pc), firewood (2.09pc), plain bread (2.05pc), potatoes (1.78pc ), cooked meat (1.47pc). pc) and Lipton tea (1.24pc).

In year-on-year terms, the items whose prices increased the most included tomatoes (194.26pc), onions (167.89pc), diesel (92.08pc), gasoline (76.07pc), legumes (69.25pc), legumes (62, 19pc), cooking oil 5 liters (60.14pc), laundry soap (58.03pc), mustard oil (56.53pc), vegetable ghee 2.5kg (56.30pc), vegetable puree (55, 61pc), pulse moong (53.72pc) and vegetable ghee 1kg (53.59ud).

UNITED NATIONS: Concerns over Kashmir, and the need to balance its relations with major powers, forced Pakistan to sit out a UN vote on Ukraine earlier this week.

The UN General Assembly on Wednesday adopted a resolution calling on countries not to recognize the four regions of Ukraine that Russia has claimed through referendums held under its occupation.

In the vote, 143 countries out of 193 members voted in favor of the resolution, while only five voted against it. Pakistan was among 35 countries, including India, that abstained.

Subsequently, in a note of explanation submitted to the General Assembly, Pakistan clarified why it had abstained.

UN envoy says respect for territorial integrity of states applies to both controlled Kashmir and Ukraine

Pakistan’s Ambassador to the UN Munir Akram explained that Pakistan fully supports the resolution’s call for respect for the sovereignty and territorial integrity of states, a principle that also applies to Ukraine, as it does to other member states.

“States cannot be torn apart by the use of force. These principles must be consistently and universally adhered to,” said Mr. Akram.

This is an argument that Pakistan has often used in various UN forums in explaining why it does not recognize the elections under the Indian occupation forces in Jammu and Kashmir.

“In the case of the referendums mentioned in the draft resolution, we recognize the complex history of Ukraine and the provisions of the Minsk Agreement,” Ambassador Akram said.

He explained that, according to international law, the right to self-determination applies to peoples under foreign or colonial domination, and “those who have not yet exercised the right to self-determination, as in the case of Jammu and Cashmere”.

Pakistan’s abstention also resonated at the FO spokesperson’s weekly briefing in Islamabad on Friday, when a journalist asked for an explanation of the decision.

The spokesman said the abstention was “a well-considered, principled and objective position on this issue” and that it “has allowed us room to engage with both sides.”

He urged the international community also to “understand and respect Pakistan’s independent position, which is based on our own considerations and context.”

The spokesman noted that Pakistan was “unequivocal in stating our position on the illegality and unacceptability of the organized referendums in Ukraine.” He also underscored the reference to controlled Kashmir in Pakistan’s response, which noted that India’s illegal actions in the valley were in complete violation of international law, adding that India’s actions “should also be given serious concern and condemnation.” Similar”.

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