Rising Food Prices Drive Sensitive Price Index Up 8.35% YoY
The Sensitive Price Index climbed 8.35% year‑on‑year, with steep increases in onions, LPG, diesel and petrol, signalling higher inflation that could pressure consumer‑goods companies on the PSX.
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Desk Analysis
How This Affects the Exchange
Sector Effect
Negative · Do not buy
Higher food and fuel costs raise input expenses for consumer‑goods companies, reducing margins and discouraging investment.
Sectors & Direction
Desk read
Desk call: Do not buy · Negatively affected
- EconomyNegatively affected
- MarketsNegatively affected
Companies
Mentions in This Briefing
Sectors: Economy, Markets — Negative · Do not buy. PSX tickers: OGDC, PPL, MARI, PSO, SNGP, ATRL. Higher food and fuel costs raise input expenses for consumer‑goods companies, reducing margins and discouraging investment.
Full Story
Open on Dawn## Overview
The Pakistan Bureau of Statistics (PBS) reported that the Sensitive Price Index (SPI) for the week ending 3 September rose 8.35 % year‑on‑year and 0.65 % week‑on‑week. The jump reflects sharp price hikes in key food items and fuels.
## Key Price Movements
- Onions – 162.75 % YoY, 26.30 % WoW, now Rs 160‑280 /kg. - LPG – 53.61 % YoY. - Diesel – 37.70 % YoY, 0.09 % WoW. - Petrol – 31.01 % YoY, 0.90 % WoW. - Wheat flour – 16.86 % YoY, 0.88 % WoW. - Tomatoes – 2.55 % WoW, 0.18 % YoY, currently Rs 120‑280 /kg. - Electricity (Q1) – 25.24 % YoY.
## Market Implications
Higher commodity prices translate into increased input costs for food‑processing and retail companies listed on the PSX. The inflationary pressure may squeeze margins and dampen consumer spending on non‑essential items.
## Regional Context
- Onion supply is delayed due to disturbances in Balochistan, while middlemen are inflating prices. - Tomato supply from Iran has been slow; local growers anticipate price stabilization with the arrival of tomatoes from Thatta, Sindh.
## Conclusion
The surge in food and fuel prices is a clear sign of rising inflation, which is likely to weigh on the profitability of consumer‑goods and retail firms in Pakistan’s stock market.