Pakistan's inflation spiral exposes crumbling market governance

Islamabad [Pakistan] Nov 15 (ANI) Short-term inflation in Pakistan continued its upward climb, with the Sensitive Price Index (SPI) rising by 4.15 per cent year-on-year during the week ending Nov 13, driven largely by the escalating costs of food essentials and household fuel. This marks the 15th straight week of rising SPI-based inflation, reflecting deepening instability in Pakistan's commodity markets, as reported by Dawn.

According to Dawn, the price surge was propelled by a spike in edible oil, sugar, and several perishable goods. Disruptions caused by the closure of the Afghan border have particularly strained supplies of vegetables, reversing earlier signs of stability. Pakistan's weak supply chain governance and recurring policy lapses are further aggravating the situation, pushing household budgets to the brink.
Week-on-week inflation also ticked upward by 0.53 per cent. Analysts point out that the persistent rise highlights the government's inability to rein in volatility in essential commodities, despite repeated assurances.
Market watchers argue that Islamabad's inadequate oversight mechanisms are allowing artificial shortages and speculative pricing to flourish. The report recalls that Pakistan's weekly inflation had previously hit an alarming 48.35 per cent year-on-year in May 2023 before gradually cooling off to around half that level in August 2023. However, the renewed surge, which again crossed 40 per cent during mid-November last year, signals yet another failure in stabilisation efforts.
Experts fear that, without comprehensive reforms, the current trend could entrench inflationary pressures well into the coming months.
On an annual basis, several major household essentials recorded substantial jumps, further reflecting the widening gap between wage growth and living costs. While a few commodities have seen relief over the year, the overall trend points to worsening hardship for low- and middle-income families already squeezed by stagnant wages and high utility charges, as cited by Dawn.
The SPI, compiled weekly from 50 markets across 17 cities, showed that prices of numerous key items climbed, some fell, and many remained unchanged, a mixed pattern, yet one that still tilts toward consumer pain. Pakistan's inflation trajectory is being shaped by structural mismanagement rather than temporary shocks, leaving citizens to shoulder the burden of a system in prolonged disarray, as reported by Dawn. (ANI)