Pakistan’s inflation has dropped to lowest level since August 2021, according to latest data released by the Pakistan Bureau of Statistics (PBS).
Shockingly, the headline inflation in Pakistan was recorded at 6.9 per cent on a year on year (YoY) basis in the previous month.
This CPI reading marks the lowest level recorded in over three years.
Experts believe that this level is an outcome of aggressive monetary tightening. The State Bank of Pakistan (SBP) has achieved bringing inflation below the one-year target of 7 per cent ahead of time.
CPI inflation dropped 0.5 per cent in September 2024 as opposed to a rise of 0.4 per cent in the previous month and an increase of 2.0 per cent in September 2023.
Analysts are of the view that inflation is declining due to multiple factors, which include high base effect, sliding global commodity and energy rates, and our very stable home unit.
Interestingly, the latest inflation reading is also lower than government expectations.
The finance division had projected inflation to decelerate further in the next two months (September-October), and hover around 8 to 9 per cent, in the monthly economic outlook released last week.
