The government has reported a significant decrease in inflation, with the annual inflation rate falling to 4.1% in December 2024, as per the Pakistan Bureau of Statistics (PBS).
Urban inflation was recorded at 4.4%, while rural areas experienced a lower rate of 3.6%. This marks a notable improvement from 4.9% in November and a dramatic drop from 29.7% in December 2023.
From July to December, the average inflation rate stood at 7.22%. Food prices saw a notable decline, with key commodities such as chicken (-13.06%), pulses (-7%), and onions (-4.91%) witnessing reductions. Tomatoes, spices, and gram flour also became cheaper by 3.28%, 2.60%, and 2.55%, respectively.
However, some items experienced price increases. Potatoes rose by 12.42%, fresh fruits by 8.84%, and ghee by 5.4%. Cooking oil, honey, sugar, fish, and eggs also saw minor hikes.
Electricity charges dropped by 5.68% in December, and construction material prices fell slightly. Despite this, solid fuel prices increased by 4.98%, vehicle fuel by 1.25%, and textile products by 4.61%.
Year-on-year, wheat and wheat flour prices dropped by over 33%, while onion and tomato prices fell by 13.32% and 45%, respectively. Conversely, motor vehicle taxes surged by 169%, while healthcare, education, and recreational costs also increased.
