Weekly inflation spikes as onion and petroleum prices soar
Pakistan's Sensitive Price Index jumped 8.62% YoY for the week ending Sept 10, driven by sharp rises in onion, LPG, diesel and petrol prices, while some food items fell.
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Desk Analysis
How This Affects the Exchange
Sector Effect
Negative · Do not buy
Rising food and energy inflation pressures consumer spending and raises cost risks for most sectors, so avoid buying PSX stocks; oil & gas may see limited upside.
Sectors & Direction
Desk read
Desk call: Do not buy · Negatively affected
- Oil & GasNegatively affected
- PowerNegatively affected
- BanksNegatively affected
- CementNegatively affected
- TextileNegatively affected
- PharmaNegatively affected
Companies
Companies Mentioned
- OGDC· Negatively affected · Do not buy
Mentions in This Briefing
Sectors: Oil & Gas, Power, Banks, Cement, Textile, Pharma — Negative · Do not buy. PSX tickers: OGDC. Rising food and energy inflation pressures consumer spending and raises cost risks for most sectors, so avoid buying PSX stocks; oil & gas may see limited upside.
Full Story
Open on Dawn## Weekly inflation accelerates
The Pakistan Bureau of Statistics released data showing that the Sensitive Price Index (SPI) rose 8.62 percent year‑on‑year for the week ending 10 September. The surge was led by soaring onion prices, which increased 125.52 percent YoY, and sharp hikes in petroleum products.
## Key price movements
- Onion: +125.52 % YoY - LPG: +55.42 % YoY - Diesel: +45.26 % YoY - Petrol: +39.10 % YoY - Wheat flour: +30.18 % YoY - Electricity (Q1): +25.24 % YoY - Chilli powder: +16.37 % YoY - Mutton: +15.92 % YoY - Beef: +13.28 % YoY - Bananas: +10.51 % YoY - Milk (fresh): +8.12 % YoY - Bread (plain): +8.09 % YoY
Conversely, several items fell in price, including potatoes (‑35.21 %), chicken (‑24.30 %), sugar (‑20.88 %), eggs (‑19.95 %), tomatoes (‑17.65 %), and various pulses.
## Weekly price changes
On a week‑to‑week basis, petrol rose 6.18 %, diesel 5.49 % and LPG 4.32 %. Minor weekly increases were recorded for pulse mash, washing soap, wheat flour and cooking oil. Some items such as bananas, tomatoes, chicken and onions showed modest weekly declines.
## Market context
The ongoing Gulf conflict, which began on 28 February, has disrupted global oil markets, pushing domestic petroleum prices higher. Higher fuel costs are being passed on to consumers through increased freight and transport charges, adding pressure on household budgets.
## Regional price differentials
Karachi recorded the highest price for a 20 kg bag of wheat (Rs 2,950‑3,200), while Islamabad and Quetta reported Rs 173 per kilogram for fine flour.
## Outlook
Persistently high food and energy inflation is likely to weigh on consumer spending and could increase cost pressures for manufacturers, while oil‑related companies may benefit from higher product prices.