Prices of essential food items are expected to increase further from Wednesday, the start of the new fiscal year 2026-27, following higher taxes, fees and service charges introduced in the budgets.
Market estimates suggest the prices of several household commodities could rise by Rs20 to Rs30 per kilogram, while some products may witness increases of 15 to 18 per cent in the coming weeks. Traders also expect another round of price hikes during the first half of July.
Over the past fiscal year, consumers have already faced sharp increases in the prices of dairy products, meat and grocery staples. Milk, which was priced at Rs200 per kilogram on July 1, 2025, now sells for Rs250 per kilogram after two price revisions. Similarly, yoghurt has increased from Rs220 to Rs280 per kilogram.
Meat prices also recorded significant jumps, with mutton rising from Rs1,800 to Rs2,700 per kilogram and beef climbing from Rs800 to Rs1,500 per kilogram. Chicken prices have also surged, increasing from around Rs400 to between Rs620 and Rs650 per kilogram.
Among grocery items, gram pulse has gone up from Rs300 to Rs380-390 per kilogram, while white chickpeas have increased from Rs380 to Rs430 per kilogram. Mash pulse now sells for Rs600 per kilogram, up from Rs500, while red kidney beans have risen from Rs400 to Rs500 per kilogram.
Packaged food products have also become more expensive. The price of a soft drink bottle has increased from Rs180 to Rs210, while ghee has climbed from Rs450 to Rs550 per pouch. Cooking oil has also registered a sharp increase, rising from Rs460 to Rs600. Traders and consumers fear that inflationary pressure will remain high throughout the new fiscal year as the impact of the latest budgetary measures continues to filter through the economy.
Earlier, Pakistan’s short-term inflation moved higher during the week ending June 18, driven mainly by a sharp increase in the prices of vegetables and poultry, according to the latest data released by the Pakistan Bureau of Statistics (PBS).
The Sensitive Price Indicator (SPI), which measures weekly changes in the prices of essential goods, increased by 0.46 per cent compared to the previous week.
Among the biggest contributors to the rise were tomatoes, whose prices surged 16.65 per cent in just one week. Potatoes became 6.82 per cent more expensive, while chicken prices climbed 5.60 per cent. Consumers also faced higher costs for washing soap, gur, mutton, LPG, eggs, fresh milk and curd.
Despite the overall increase, some household items became cheaper during the week. Onion prices fell 2.98 per cent, followed by garlic at 2.51 per cent and bananas at 1.28 percent. Fuel prices also provided some relief, with petrol declining 1.06 per cent and diesel dropping 0.51 per cent. Prices of wheat flour and several pulses also recorded modest decreases.
PBS data showed that out of 51 essential items monitored during the week, prices of 25 items increased, 11 declined and 15 remained unchanged.
Annual inflation remains in double digits
On a year-on-year basis, the SPI recorded an increase of 15.28 per cent, highlighting the continued pressure on household budgets despite some recent easing in the prices of selected food items.
Onions topped the list of annual price increases, costing nearly 80 per cent more than a year ago. Tomato prices were up 68.59 per cent, while electricity charges for the first quarter rose 59.40 per cent. Wheat flour, LPG, petrol and diesel also posted substantial increases compared with the same period last year.
Meat products remained expensive, with mutton prices rising 16.30 per cent and beef increasing 12.86 per cent over the year. Garlic, chilli powder and bread also recorded notable gains.
However, several food items became cheaper compared with last year. Potato prices dropped 41.09 per cent, while eggs were down nearly 27 per cent. Prices of sugar and various pulses also recorded significant declines.
Meanwhile, the average price of a 50-kilogram bag of Sona Urea reached Rs4,662, up 0.25 per cent from the previous week and 4.75 per cent higher than a year earlier. Cement prices averaged Rs1,503 per 50-kilogram bag, down 0.50 per cent week-on-week but still 6.19 per cent higher than last year.
The SPI tracks the prices of 51 essential commodities across 50 markets in 17 cities and serves as an important indicator of short-term inflation trends in the country.
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