Pakistan records lowest inflation in nearly three years, according to the latest data released by the Pakistan Bureau of Statistics (PBS). The Consumer Price Index (CPI) increased by 9.6% year-on-year (YoY) in August, marking a notbale decrease as compared to previous months, this is the lowest inflation rate recorded in nearly 34 months, reflecting the government’s efforts to stabilize the economy.
Pakistan Records Lowest Inflation – August Overview
The CPI, which monitors the inflation rate by tracking changes in household expenses across various categories, showed a substantial reduction from the 11.1% inflation recorded in July 2024. The drop is even more pronounced when compared to the 27.4% inflation rate in August 2023. Although there was a slight month-on-month increase of 0.39% in August, the overall trend points towards declining inflation. Analysts from Topline Securities, a Karachi-based brokerage firm, highlighted that this decline represents the lowest inflation rate seen in the country in nearly three years.
Urban and Rural Inflation Discrepancies
The data also revealed disparities between urban and rural areas. Urban regions experienced an inflation rate of 11.7%, while rural areas witnessed a lower rate of 6.7% in August; this pattern of declining inflation continues from July, where the urban inflation rate was 11.1%, down from 12.6% in June. Prime Minister Shehbaz Sharif expressed optimism, noting that the government’s economic policies are yielding positive results. The Ministry of Finance’s outlook for August predicted inflation to remain between 9.5% and 10.5%, with the potential for further reduction in the coming months.
Pakistan’s economic recovery is also being recognized internationally, with Moody’s recently upgrading the country’s credit rating, citing improvements in macroeconomic conditions and government liquidity.
Read more: Pakistan’s Inflation Hits Lowest Point in 2.5 Years
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