According to recent surveys, the inflation rate in Pakistan has touched its lowest in the last three years. From August, the Pakistan Consumer Price Index (CPI) has grown by 9.6% compared to last year’s August, which marked the lowest inflation rate in 34 months. This was from the report launched by the Pakistan Bureau of Statistics (PBS) on Monday.
The CPI for household inflation is also measured and includes various categories from households. The 9.6% is a major drop from the 11.1% in inflation rate in Pakistan recorded in 2024 July and the biggest upset of the 24.7% inflation rate in August 2023.
The PBS also reported a slight monthly inflation increase of 0.39% in August. According to Karachi-based brokerage firm Topline Securities, this marks the lowest inflation rate in nearly three years. The firm noted that the average inflation for the first two months of FY25 is 10.36%, compared to 27.84% during the same period in FY24.
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The Urban Area of Pakistan has faced inflation of 11.7%, while the rural area has a lower rate comparatively Urban areas of 6.7%. The continuous drop in the graph was recorded in July, where inflation was 11.1%, YoY down from 12.6% in June, and 28.3% in 2023.
The Prime minister of Pakistan showed pleasure in denying the inflation rate and told the improvement in another economic rate in Pakistan. He referred to the Ministry of Finance’s August forecast, which predicted inflation to remain between 9.5% and 10.5% in August and potentially decrease further to 9-10% in September, citing stabilization in economic indicators.
PM Shehbaz Sharif also underlined that after Fitch, Moody’s another global rating agency recently boosted Pakistan’s credit rating. Moody’s raised Pakistan’s local and foreign currency issuer and senior unsecured debt ratings to Caa2 from Caa3, acknowledging the country’s improving macroeconomic conditions and better government liquidity and external positions
Inflation Rate Details in Pakistan:
Year-on-Year Changes:
- Urban Food Prices: Onions (+136.32%), fresh vegetables (+76.35%), pulse gram (+42.35%), chickpea flour (+31.15%), fish (+28.98%), fresh fruits (+27.32%), pulse moong (+25.05%), and milk powder (+24.17%).
- Urban Non-Food Prices: Gas charges (+318.74%), motor vehicle tax (+168.79%), dental services (+28.84%), and cotton cloth (+24.17%).
- Rural Food Prices: Onions (+144.27%), fresh vegetables (+57.31%), pulse gram (+39.19%), beans (+30.52%), pulse moong (+29.46%), milk powder (+28.42%), butter (+26.14%), fresh fruits (+25.11%), and fish (+24.13%).
- Rural Non-Food Prices: Motor vehicle tax (+126.61%), woolen readymade garments (+38.42%), education (+22.95%), cotton cloth (+22.13%), and marriage hall charges (+21.77%).
Month-on-Month Changes:
- Urban Food Prices: Onions (+22.84%), chicken (+13.62%), eggs (+12.39%), fresh vegetables (+12.25%), chickpea flour (+4.88%), pulse gram (+4.55%), and gram whole (+3.82%).
- Urban Non-Food Prices: Motor vehicle tax (+168.79%), stationery (+5.08%), hosiery (+3.41%), and personal effects n.e.c. (+2.47%).
- Rural Food Prices: Chicken (+19.69%), fresh vegetables (+18.67%), onions (+17.72%), eggs (+14.28%), pulse gram (+5.32%), and chickpea flour (+4.44%).
- Rural Non-Food Prices: Motor vehicle tax (+126.61%), dental services (+3.24%), and stationery (+2.55%).
