Pakistan’s economic industry saw a remarkable improvement, with Pakistan’s inflation at its lowest point in nearly a decade, with the Consumer Price Index (CPI) inflation dropping to 2.41% in January 2025. This is a notable decline from the 4.1% recorded in December 2024 and a sharp contrast to the staggering 28.3% in January 2024. The latest data from the Pakistan Bureau of Statistics (PBS) indicates that this is the lowest inflation rate recorded in over nine years, reflecting improved economic conditions and price stability.
Pakistan’s Inflation at its Lowest in Nine Years
According to financial analysts, inflation for the first seven months of FY25 averaged 6.5%, a steep decline from the 28.73% recorded during the same period in FY24. Urban CPI inflation dropped to 2.7% year-on-year, down from 30.2% in January 2024, while rural CPI inflation fell to 1.9% from 25.7% in the same period last year. The data highlights a substantial easing of inflationary pressures, signaling better price control and economic stability.
Moreover, the Wholesale Price Index (WPI) saw a YoY decrease to 0.6% in January 2025, further reinforcing the downward inflationary trend. Similarly, the Sensitive Price Index (SPI) also registered a notable decline, falling to 0.7% from 36.2% in January 2024.
Economic Stability
Economists attribute this sharp decline to a combination of improved monetary policies, better fiscal management, and stable global commodity prices. The reduction in food and energy prices has also played a big role in easing inflation. However, despite this progress, experts caution that sustained economic reforms are necessary to maintain stability in the long run. With inflation at its lowest in nearly a decade, Pakistan’s economic outlook appears more promising, offering relief to businesses and consumers alike.
Read more: Pakistan Records Lowest Inflation in Nearly Three Years
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