Pakistan's Inflation declines to single digit in August

Pakistan’s inflation declined to 9.6 per cent in August year-on-year (YoY) from 11.1 per cent in the last month and 27.4 per cent in the same month of fiscal year 2023.

The Pakistan Bureau of Statistics (PBS) shared the data on Monday, depicting inflation reduced to single digits and marked a 34-month-low. 

It was the first single-digit inflation record since October 2021, when it was recorded at 9.2 per cent.

According to the statistics, short-term inflation jumped slightly and rose to 0.4 per cent in August 2024 month-on-month. However, the consumer price index (CPI) jumped to 2.1 per cent in July.

The average core inflation, measured by non-food and non-energy, rose 11.9 per cent YoY in August, compared to 13.8 per cent of the previous month. Moreover, core inflation CPI increased to 0.5 per cent in August MoM.

Experts attributed the slowdown in inflation to a fall in electricity prices after Prime Minister Shehbaz Sharif announced a three-month relief for domestic consumers who use up to 200 electricity units monthly.

Over the cost of housing, energy fell by 1.4 per cent MoM. However, energy costs jacked up 22.2% YoY. 

The decline came after the Ministry of Finance said in August outlook on Friday that inflation is expected to decline to 9-10 per cent in September on account of stability in economic indicators.