Inflation reaches 44-month low in Pakistan

Consumer Price Index (CPI) decreased to 6.9 percent year-on-year (YoY) in September, marking a 44-month low, according to the data shared by the Pakistan Statics Bureau (PBS) on Tuesday.

The development came after the consecutive decline in the aggressive interest rate was cut on June 10 by the Monetary Policy Committee (MPC) to bring the inflation down to the medium-term target of 5-7 percent in September 2025.

Mohammad Sohail, chief executive of Topline Security, said that the ease in inflation became possible after relief in the policy rate.

He said the SBP achieved its target of bringing inflation to 7 percent.

The CPI decreased to 9.6 percent in the previous month, inflation clock at a single digit for the first time after 34 months.

The current statistics showed another achievement when the CPI marked a 44-month low compared to 31.4 percent in September 2023.

Month-on-month inflation was recorded with a slight decline of 0.5 percent in September compared to 0.4 percent in August.

The data indicated that the declining ratio was 2.0 percent in September 2023.

On September 28, the Ministry of Finance stated in its monthly outlook that the economic indicators showed positive developments during the initial two months of the fiscal year 2025 and “inflation is expected to remain within the range of 8pc to 9pc in September and October.”

“This trajectory is expected to continue in the coming month,” it added.