Pakistan’s headline inflation stood at 6.9% year-on-year in September 2024, down from 9.6% in August, according to data released by the Pakistan Bureau of Statistics (PBS) on Tuesday. This is the lowest consumer price index (CPI) reading since January 2021.
Mohammed Sohail, CEO of Topline Securities, commented, “Thanks to aggressive monetary tightening, the State Bank of Pakistan (SBP) has successfully brought inflation below the 7% one-year target ahead of schedule.”
On a monthly basis, the CPI dropped by 0.5% in September 2024, compared to a 0.4% increase in the previous month and a 2.0% rise in September 2023.
Experts attribute the decline in inflation to several factors, including a high base effect, falling global commodity and energy prices, and a stable exchange rate.
The latest figure falls short of the government’s expectations. The finance ministry had anticipated a further slowdown in inflation over the next few months (September-October) to approximately 8-9%, as outlined in its economic outlook released on Friday.
In its ‘Monthly Economic Update and Outlook,’ the Ministry of Finance stated, “Inflation is likely to remain within the 8% to 9% range for September and October 2024.”
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