NewKerala.com

Pakistan Inflation Hits 74-Week High at 12.15% Amid Middle East Crisis

Pakistan's inflation has surged to a 74-week high of 12.15% as measured by the Sensitive Price Indicator, reversing a period of relative stability in early 2026. The spike is primarily driven by geopolitical tensions in the Middle East, which have caused global energy prices to skyrocket. This has led to massive year-on-year increases in fuel costs, with diesel up over 101%, severely impacting transportation and logistics. The energy shock has also intensified food inflation, with prices for staples like onions, wheat flour, and tomatoes rising sharply, placing severe strain on household budgets.

Key Points: Pakistan Inflation Hits 74-Week High at 12.15%

  • SPI inflation at 74-week high
  • Diesel prices soar 101% YoY
  • Food staples like onions up 37.8%
  • Geopolitical tensions drive energy volatility
2 min read

Pakistan inflation hits 74-week high at 12.15 pc: Report

Pakistan's inflation surges to 12.15%, a 74-week high, driven by Middle East tensions spiking global energy and food prices.

"The latest spike reflects the severity of the ongoing price shock. - Analysts at Topline Securities"

New Delhi, April 12

Pakistan is once again grappling with rising inflation as escalating tensions in the Middle East, particularly the Israel-US conflict with Iran, begin to ripple through its economy, a report has said.

The surge in global energy prices has pushed the country's inflation back into double-digit territory, with the Sensitive Price Indicator (SPI) climbing 12.15 per cent year-on-year (YoY), marking a 74-week high, The Express Tribune report said.

According to analysts at Topline Securities, the latest spike reflects the severity of the ongoing price shock.

This comes after a period of relative stability in late 2025, when SPI inflation had dropped to as low as 2.4 per cent in early January 2026, largely due to a favourable base effect.

However, the situation has deteriorated rapidly, with inflation jumping sharply from around 4-5 per cent levels recorded in February this year.

The primary driver behind this sudden rise is the volatility in global energy markets triggered by geopolitical tensions in the Middle East.

As international oil prices surged amid fears of supply disruptions, the impact quickly filtered into Pakistan's domestic economy, where fuel costs significantly influence overall inflation.

Fuel prices have seen a steep increase over the past year, with diesel soaring by 101.02 per cent, petrol rising 48.70 per cent and LPG climbing 65.86 per cent on a YoY basis.

This sharp rise has increased transportation and logistics costs, setting off a chain reaction that has driven up the prices of essential goods.

The energy shock has also intensified food inflation, placing additional strain on household budgets.

Prices of key staples have risen significantly, with onions becoming costlier by 37.80 per cent, wheat flour by 30.10 per cent and tomatoes by 23.07 per cent compared to last year.

Protein sources have not been spared either, as mutton and beef prices have increased by nearly 15 per cent and 14 per cent, respectively, as per the report.

On a weekly basis, the pressure appears even more pronounced. Diesel prices jumped 54.71 per cent while petrol rose 17.86 per cent, leading to immediate increases in transportation costs.

This has translated into sharp rises in the prices of perishable food items within just a week, including tomatoes, potatoes and onions.

- IANS

Share this article:

Reader Comments

P
Priya S
Onions at 37% and wheat flour at 30%! This is heartbreaking. A stable Pakistan is good for the entire region. Geopolitical tensions far away shouldn't cripple local economies like this. Our government must also keep a close watch on our own essential commodity prices.
A
Aman W
While external factors are a trigger, domestic economic mismanagement over decades is the root cause. You can't blame everything on Middle East tensions. Their reliance on imports for energy and food makes them extremely vulnerable. A lesson for all developing nations.
S
Sarah B
The numbers are staggering. Diesel up 101% in a year? That's not just inflation, that's economic distress. It shows how interconnected the world is now. Conflict in one region can empty kitchen shelves in another.
V
Vikram M
Feel for the average citizen there. When tomatoes and potatoes become luxury items, you know the crisis is deep. India has its challenges too, but our RBI and government have done a decent job keeping inflation in check recently. Stability is precious.
K
Karthik V
This is why energy independence and investing in renewables is so crucial. We are lucky to have made some progress. Hope Pakistan can find a way out of this cycle. No family should have to choose between fuel and food.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50