AZEE News Desk – July 26, 2025

Inflationary pressure surged as the Sensitive Price Indicator (SPI) rose 4.07% WoW, driven by sharp increases in gas (29.85%) and electricity tariffs (21.46%). The poorest households (Q1) faced a 3.98% rise in living costs.

Tomatoes (22.93%) and eggs (3.96%) also spiked, though chicken (-7.95%) and sugar (-4.25%) offered some relief.

YoY inflation stood at 2.22%, with ladies' sandals and gas charges among the highest gainers.

Analysts blame global energy prices and supply chain issues, urging targeted subsidies for low-income groups.

CPI for July is projected at 3.3% YoY, with electricity and gas prices expected to climb 15% and 22.7% MoM respectively.

Monetary policy implications loom as SBP prepares to announce its rate decision on July 30.