Pakistan’s headline inflation fell to 9.6% year-on-year in August, down from 11.1% in July and 27.4% in August 2023, according to the latest data from the Pakistan Bureau of Statistics (PBS) released on Monday. This marks the first time in three years that inflation has dipped into single digits, with a previous rate of 9.2% recorded in October 2021.
On a month-to-month basis, the Consumer Price Index (CPI) rose by 0.4% in August 2024, compared to a 2.1% increase in July and a 1.7% increase in August 2023.
The finance ministry’s monthly economic outlook had projected inflation for August to fall between 9.5% and 10.5%. It also anticipated that inflation would decrease further to 9-10% in September 2024, citing stable economic indicators.
Prime Minister Shehbaz Sharif has expressed satisfaction with the reduction in inflation and improved economic indicators, noting a significant drop in the CPI in July. He highlighted that the inflation rate has decreased to 11% and mentioned promising predictions for further reductions in September. Additionally, Sharif noted Moody’s recent upgrade of Pakistan’s credit rating, reflecting positive economic progress recognized by global financial institutions.
