Prices on fire: Double-digit inflation returns

Sameeullah THE queues outside utility stores are growing longer again in Pakistan. Public transport fares have climbed sharply, electricity bills continue to shock middle-class consumers and fuel costs ripple through nearly every aspect of daily life. After a brief period of relative stability, the return of double-digit inflation has reignited anxieties across a country already exhausted by years of economic turbulence. Short-term inflation, measured by the Sensitive Price Index (SPI), increased by 14.75 per cent year on year for the week ending June 4, mainly due to higher retail prices of perishable food items, according to official data released on Friday.The spike has exposed the fragility of the country’s economic recovery and intensified concerns that millions of households may once again be dragged deeper into financial distress. For many Pakistanis, the latest inflation surge is not merely another economic statistic. It marks the return of a crisis that had already devastated savings, weakened household incomes and pushed large sections of the population closer to poverty. Pakistan’s latest inflation spike has been closely linked to global energy disruptions caused by escalating tensions in the Middle East. Blockade-related instability around the Strait of Hormuz sharply increased international fuel prices, directly affecting Pakistan’s import-dependent energy sector. The country’s weekly oil import bill reportedly rose from about $300 million before the Iran-related conflict to nearly $800 million afterwards, highlighting its vulnerability to geopolitical shocks. With limited domestic energy capacity and foreign exchange constraints, higher oil prices quickly fuel domestic inflation. Rising transport costs and production expenses increase consumer prices, while residents in Karachi, Lahore and Islamabad report higher commuting and food costs. Pakistan’s food inflation remains among the most politically and socially sensitive dimensions of the current crisi