The Sensitive Price Indicator (SPI) recorded a 0.98% week-on-week (WoW) decline for the week ended 02 July 2026, indicating a short-term easing in inflationary pressures, primarily driven by substantial reductions in fuel prices. However, on a year-on-year (YoY) basis, the SPI remained elevated, increasing 13.52%, reflecting continued inflationary pressure from food and utility-related items.

According to the Pakistan Bureau of Statistics (PBS), the weekly decline was largely attributed to a sharp fall in petrol prices (19.77%), followed by diesel (17.73%) and LPG (12.60%). Other items registering price declines included chicken (1.97%), bananas (1.44%), pulse moong (1.29%), pulse mash (0.84%), garlic (0.63%), pulse gram (0.23%), and mustard oil and sugar (0.21% each).

Despite the overall weekly decline, several essential food items posted notable increases. Tomatoes surged by 125.40%, while onions increased 10.72%, potatoes 10.06%, eggs 8.32%, and wheat flour 5.08%. Moderate increases were also observed in match boxes (0.96%), shirting (0.87%), washing soap (0.63%), fresh milk (0.49%), bread (0.47%), IRRI rice (0.45%), and cigarettes (0.23%).

Out of the 51 essential commodities monitored under the SPI basket, prices of 23 items increased, 11 items declined, while 17 items remained unchanged, highlighting mixed price trends across consumer categories during the week.

On an annual basis, the SPI increased 13.52%, with the sharpest price increases recorded in tomatoes (238.72%), onions (80.96%), wheat flour (68.47%), electricity charges for Q1 (49.14%), LPG (44.08%), and gas charges for Q1 (29.85%). Other notable increases included gents sponge chappal (16.69%), mutton (16.06%), chilies powder (15.20%), beef (12.89%), bananas (10.53%), and bread (9.18%).

Meanwhile, several commodities remained cheaper compared with the same period last year. Potatoes declined by 36.60%, followed by pulse gram (22.11%), sugar (19.42%), salt powder (14.09%), pulse masoor (12.32%), eggs (9.30%), chicken (6.96%), and pulse moong (6.06%).

The latest SPI data indicates that while lower petroleum prices have provided short-term relief and reduced weekly inflation, sustained increases in food and utility prices continue to keep annual inflation in double digits, highlighting the need for broader price stability in essential consumer goods.