Pakistan sees lowest inflation in 60 years at 0.3%

Annual inflation in Pakistan slowed to 0.30%, the lowest level in six decades, driven by a sharp decline in the prices of fuel, electricity, and perishable food items. 

Inflation fell much more sharply than the Ministry of Finance anticipated, which had projected a range of 1.5% to 2%.

The Pakistan Bureau of Statistics (PBS) data shared on Friday showed that the basket of essential goods and services increased at an average pace of 0.3% last month, marking the lowest reading since 1965, the year that recorded an annual rate of inflation of just 0.2%.

According to PBS, the Consumer Price Index (CPI) was down 0.8% month-on-month in April. 

Read: Pakistan’s inflation drops to 0.7% in March, lowest in three decades

Pakistan had witnessed elevated inflation for nearly three years, with CPI increases above 10% in November 2021 and remaining high for a straight 33 months.

In May 2023, Inflation rate peaked to 38%, amid soaring food, fuel, and energy prices. 

In April 2024, the inflation stood at 17.3% and dropped to a single-digit 9.6% in August 2024.

During the 10 months of the ongoing fiscal year, a significant drop of 25.97% was recorded compared to last year.

The overall data showcased disinflation in the country, but the average inflation over the past 51 months was recorded at 83%, indicating that the cost of living remains high despite the recent slowdown.