Pakistan's weekly inflation accelerated sharply to 13.08% year-on-year for the week ending July 16, driven primarily by rising petroleum product prices, official data released Friday showed. The Sensitive Price Index (SPI) recorded a 1.40% increase from the previous week, signaling sustained pressure on household budgets. Main Developments The SPI has now risen for 66 consecutive weeks, though the pace of growth has moderated. The government's shift to a daily pricing mechanism for petroleum products means fuel price changes will reflect more quickly in short-term inflation data. Year-on-year, electricity charges surged 49.14%, gas charges rose 29.85%, wheat flour prices jumped 71.81%, and liquefied petroleum gas (LPG) climbed 42.50%. These energy and food cost increases are the primary drivers of the SPI spike. Read also: Geopolitical Tensions Spark 2,321-Point Drop on PSX On a weekly basis, tomatoes became 22.79% more expensive, chicken rose 14.66%, LPG increased 12.46%, diesel climbed 4.41%, and petrol went up 4.40%. Garlic, eggs, tea, onions, and potatoes also posted weekly gains. Background Pakistan's inflation has been persistently elevated, with the SPI recording increases for over a year. The government recently moved to daily fuel pricing to curb political interference, a policy shift that now ties consumer price data more directly to global oil markets. Annual price comparisons reveal even starker trends: tomatoes are up 210.18%, onions 75.93%, and wheat flour 71.81% from a year ago. Mutton and beef also rose significantly—16.02% and 13.60%, respectively. Why It Matters The broad-based SPI increase signals continued cost-of-living pressures on average households. Energy-related costs are weighing heavily on budgets and pushing up transport expenses across the economy. This is classic cost-push inflation, where rising input costs force higher consumer prices. Food inflation remains elevated, with essential items like wheat flour, cooking oil, and vegetables becoming substantially more expensive. Even as some items like potatoes and sugar have declined year-on-year, the overall trend points to sustained financial strain on consumers. What's Next With the daily fuel pricing mechanism now in effect, future weekly inflation readings will more rapidly reflect any changes in petroleum prices. The 66-week consecutive increase streak suggests inflation will remain a key economic challenge in the near term. Monitoring will continue to see whether the pace of growth further moderates or if new price pressures emerge from global commodity markets or domestic supply chains.