कारोबार

ISLAMABAD: Weekly inflation increased by 0.15% during the second week of August 2026, pushing the year-on-year inflation rate to 9.11%, according to the latest data released by the Pakistan Bureau of Statistics (PBS). The weekly Sensitive Price Indicator (SPI), which tracks changes in the prices of essential consumer goods, showed a mixed trend during the week. Prices of several food and household items increased, while consumers received some relief from lower prices of petroleum products and selected food commodities. According to the PBS report, prices of 20 out of 51 essential commodities increased during the week under review, while prices of nine items declined. The prices of the remaining 22 commodities remained unchanged. Onion prices surge sharply Among the major price increases, onions recorded the most significant weekly jump, becoming 24.68% more expensive compared with the previous week. The increase is likely to add further pressure on household food budgets, particularly for low-income consumers who are more exposed to fluctuations in basic food prices. The price of gram pulse increased by 3.35%, while chicken became 2.45% more expensive during the week. LPG prices also edged up by 0.67%. Other commodities that recorded weekly price increases included tea, mustard oil, yoghurt and masoor pulse, adding to the overall upward movement in the weekly inflation indicator. Petroleum prices provide some relief The weekly inflation reading was partly offset by declines in the prices of petroleum and several food items. Petrol prices decreased by 2.35% during the week, providing some relief to consumers and transport users. Tomato prices fell by 1.26%, while potatoes became 0.73% cheaper. Diesel prices also declined, though marginally, by 0.29%. Prices of bananas, moong pulse, eggs and sugar also recorded weekly decreases. Despite these reductions, the increase in the prices of several essential food items, particularly onions, pulses and chicken, kept overall weekly inflation in positive territory. Food prices remain major source of annual pressure The year-on-year comparison presents a more pronounced picture of price pressures in several essential commodities. Tomatoes recorded the largest annual increase, with prices rising by 143.77% compared with the same period last year. Onion prices were 125.75% higher, while wheat flour became 77.41% more expensive. LPG prices increased by 55.41% on an annual basis, while diesel recorded a 34.05% increase. Petrol prices were also 23.02% higher than a year earlier. The sharp annual increases in basic food items indicate that consumers continue to face significant pressure in meeting everyday household expenses, even though some commodities have become cheaper compared with last year. Several commodities become cheaper annually The annual data also showed declines in the prices of a number of commodities. Potato prices dropped by 30% compared with a year earlier, marking the largest annual decline among the commodities listed in the report. Sugar prices fell by 17.93%, while chicken became 17.45% cheaper on an annual basis. Gram pulse, eggs and moong pulse also recorded year-on-year declines. The contrasting movements highlight the uneven nature of inflation, with some essential commodities witnessing substantial annual increases while others have recorded notable reductions. The latest PBS figures suggest that although overall inflation remains elevated, price movements continue to vary considerably across different categories. Food, energy and other essential commodities remain key factors influencing household expenditure and the broader cost-of-living situation.

LONDON: Global oil prices moved higher on Friday and were set to post strong weekly gains as investors closely monitored escalating tensions between the United States and Iran, raising fears of potential disruptions to energy supplies from the Middle East. Brent crude futures advanced by 1.45%, reaching $88.33 per barrel, while US West Texas Intermediate (WTI) crude rose 1.26% to $82.27 a barrel. The gains came as diplomatic efforts aimed at easing regional conflict showed little progress, increasing uncertainty in global energy markets. Market participants remained focused on reports that Washington could intensify economic pressure on Tehran, including the possibility of expanding maritime restrictions and tightening sanctions. Analysts said any further deterioration in relations between the two countries could have a significant impact on global crude exports, particularly given the Middle East’s critical role in oil production. Energy analysts noted that concerns over supply interruptions have become a key driver of recent price movements. While no major disruption has yet occurred, traders are pricing in the risk that a broader conflict could affect shipping routes and regional oil infrastructure. “Geopolitical developments continue to dominate market sentiment,” analysts said, adding that a major escalation could trigger a sharper increase in oil prices and add to inflationary pressures worldwide. Meanwhile, economic data from the United States added another dimension to market activity. A survey released on Friday indicated that consumer sentiment weakened in early August as households faced higher living costs, partly linked to rising energy prices and global uncertainty. US retail sales data also came in weaker than expected, leading investors to scale back expectations of another interest rate increase by the Federal Reserve next month. The softer economic outlook pushed the US dollar lower and reduced Treasury yields, offering support to commodities priced in dollars, including gold and oil. Spot gold prices climbed 0.69% to $4,380.03 per ounce, while US gold futures settled 0.4% higher at $4,437.30 an ounce as investors sought safe-haven assets amid geopolitical concerns. In currency markets, the Japanese yen strengthened slightly against the US dollar, trading near 159.37 per dollar. The movement followed reports that the Bank of Japan may consider raising interest rates as early as September. However, traders continued to watch the key 160-yen level, which could prompt intervention by Japanese authorities. Global equity markets showed mixed performance. On Wall Street, technology stocks weighed on major indexes after recent gains. The Dow Jones Industrial Average slipped 73.41 points, while the S&P 500 and Nasdaq Composite also closed lower. Despite Friday’s decline, both the S&P 500 and Nasdaq remained on course for a third consecutive weekly gain. European markets also ended lower, snapping a four-week winning streak as rising oil prices and geopolitical risks overshadowed generally positive corporate earnings. MSCI’s global equity index edged down 0.09%, reflecting cautious investor sentiment, while Asia-Pacific shares outside Japan recorded modest gains. Market strategists said investors are increasingly balancing optimism over corporate earnings and expectations of easier monetary policy against uncertainty surrounding international conflicts. John Sidawi, Senior Portfolio Manager at Federated Hermes, observed that financial markets have recently shown resilience despite geopolitical shocks, but warned that this calm may not last indefinitely. He noted that either a significant escalation in conflict or a clear diplomatic breakthrough could lead to a much stronger market reaction than current asset prices suggest.

The Pakistan Stock Exchange (PSX) witnessed a relatively volatile trading week, with the benchmark KSE-100 Index ending lower after losing 1,325 points over the five trading sessions. The benchmark index settled at 180,104 points at the close of the week, compared with its previous level, reflecting a decline in investor sentiment and selling pressure across the market. During the week, the KSE-100 Index moved within a range of 2,568 points. The index touched a weekly high of 182,347 points, while its lowest level stood at 179,778 points, highlighting fluctuations in trading activity throughout the period. Despite the overall decline in the benchmark, trading activity remained substantial. A total of approximately 3.41 billion shares changed hands during the week, with the combined traded value reaching around Rs152 billion. The market’s overall capitalization also came under pressure during the reporting period. According to the weekly market data, total market capitalization declined by approximately Rs107 billion, falling to Rs20.13 trillion. Market participants continued to monitor developments affecting domestic economic conditions, investor confidence and broader market sentiment. The movement in the benchmark index reflected a cautious approach among investors, with fluctuations in buying and selling activity contributing to the week’s overall performance. The decline in the KSE-100 Index comes despite continued interest in equities, as investors assessed market valuations and economic indicators while keeping a close watch on developments that could influence the direction of the stock market in the coming sessions.