WEB DESK: Pakistan’s headline inflation, measured by the Consumer Price Index (CPI), dropped to 4.1 per cent year-on-year in December 2024, down from 4.9 per cent in November, according to data released by the Pakistan Bureau of Statistics (PBS) on Wednesday.
This marks the lowest inflation rate in 81 months, a milestone highlighted by Topline Securities.
CPI inflation recorded fractions increase by 0.1 per cent compared to the previous month’s reading of 0.5 per cent and 0.8 per cent in December 2023 on a month-on-month basis.
Mild to moderate economic strategic policy yields fruits as the Ministry of Finance has already targeted inflation levels not above 4-5 per cent for December. As it mentions in its Monthly Economic Update and Outlook, the ministry attributed the basis of said improvement to “hard-earned economic stability” in the scenario of remittances, export flows, exchange rate stabilization, and controlled imports.
After a record CPI inflation rate of nearly 38 per cent in May 2023, this trend is on an excellent path. Since then, all signs indicate steadily declining inflation, giving households and businesses relief across Pakistan.
Disinflation is raising hopes for more monetary easing. In its last action, the Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) announced to reduction of the key policy rate by 200 basis points to 13 per cent. Since June 2024, a total of 900 basis points have been cut.
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