Pakistan’s headline inflation rate fell to 6.9 percent year-on-year in September 2024, marking a significant decrease from August’s 9.6 percent, according to the latest data from the Pakistan Bureau of Statistics (PBS). This marks the second consecutive month that inflation has remained in single digits, offering some relief to consumers and policymakers alike.
According to Arif Habib Limited, this is the lowest inflation rate recorded in 45 months, dating back to January 2021. The decline in inflation is seen as a positive sign for the country’s economic stability.
On a month-on-month basis, the Consumer Price Index (CPI) decreased by 0.5 percent in September 2024, contrasting with a 0.4 percent increase in the previous month and a 2.0 percent rise in September 2023.
Core inflation, which excludes food and energy prices, rose by 10.4 percent year-on-year in September 2024. This is a decrease from the 11.9 percent increase recorded in August and a significant drop from the 22.1 percent rise in September 2023. On a monthly basis, the core CPI increased by 0.3 percent in September 2024, compared to a 0.5 percent rise in the previous month and a 1.6 percent increase in September 2023.
The continued decline in inflation rates is expected to influence monetary policy decisions and could provide room for the central bank to adjust interest rates to support economic growth.
