Pakistan’s Sensitive Price Indicator (SPI) rose by 6.44% year‑on‑year for the week ended March 11, 2026, according to the latest Pakistan Bureau of Statistics data, signalling a notable spike in short‑term inflation. The increase reflects rising costs across key household items, particularly energy products.
Petrol prices increased by 20.60%, diesel by 19.54%, and liquefied petroleum gas (LPG) by 12.13% compared to the previous week, driven largely by recent adjustments in fuel rates linked to global oil market pressures.
Food Prices Also Add Pressure
While energy costs were the main driver, several food staples contributed to the higher weekly inflation. Items such as onions (up 9.63%), bananas (1.44%) and wheat flour (1.28%) recorded price increases. Other essential food and household items saw smaller rises during the same period.
Out of 51 essential goods monitored, prices for 14 items increased, nine decreased, and 28 remained unchanged, underscoring inflationary pressures in both energy and food categories.
Context: Fuel Costs and Broader Inflation Risks
The spike in fuel costs follows a recent government decision to raise domestic petrol and diesel prices sharply, responding to higher global oil prices amid geopolitical tensions in the Middle East. Pakistan’s fuel price hike was among the largest on record, with petrol and diesel prices each increasing significantly.
These energy price shocks can ripple through the economy quickly. Higher transport and production costs often push up prices of goods and services, adding upward inflation pressure. Economists warn that sustained fuel price volatility could keep overall inflation elevated in the near term.
