Pakistan’s consumer price index (CPI) rose 9.6% year-on-year in August, marking the lowest increase in 34 months, according to data released by the Pakistan Bureau of Statistics (PBS) on Monday.
The CPI, which tracks household inflation, reported a rise in general inflation to 9.6% compared to 11.1% in the previous month and 27.4% in August 2023. Urban inflation climbed by 11.7%, while rural areas saw a 6.7% increase.
Karachi-based Topline Securities highlighted that this figure represents a 34-month low. “The average inflation for the first two months of FY25 stands at 10.36%, a significant drop from 27.84% in the same period last year,” the firm noted.
In July, inflation had increased to 11.1% from 12.6% in June and 28.3% in July 2023, reaching an 11.8% high in May—a 30-month low. Prime Minister Shehbaz Sharif expressed satisfaction with the declining inflation rate and other improving economic indicators.
The Ministry of Finance’s August outlook projected inflation to remain between 9.5% and 10.5%, with a further drop to 9-10% in September due to economic stability. Additionally, global rating agency Moody’s upgraded Pakistan’s credit ratings, reflecting improved macroeconomic conditions and liquidity.
Year-on-year, significant price increases included onions, fresh vegetables, and pulses in urban and rural areas. Non-food items like gas charges and motor vehicle taxes also saw substantial hikes.
Month-on-month, urban areas experienced price rises in onions, chicken, and eggs. In rural areas, increases were noted in chicken, fresh vegetables, and onions, with motor vehicle taxes also rising significantly.
