The annual inflation rate in Pakistan has dropped to 6.9% in September, a significant decline from last year’s alarming rate of 31.4%, according to the latest data from the Pakistan Bureau of Statistics (PBS). This marks the first time in several months that inflation has fallen to single digits, signaling a positive shift for the country’s economy.
In addition, the monthly inflation rate decreased by 0.5% from August 2024, when it stood at 9.6%. This reduction has brought inflation levels below the government’s projections of 8-9% for September and October.
Breaking down the numbers, urban areas reported an inflation rate of 9.3%, while rural regions experienced a much lower rate of 3.6%. The PBS report indicates a notable decrease in the prices of essential food items: tomatoes dropped by 24.34%, vegetables by over 18%, and fruits by 4.49%. Wheat flour prices fell by 5.53%, and wheat became 4.46% cheaper. Pulses like daal masoor and daal mash also saw reductions of 4% and 2.67%, respectively.
However, some food items did see price increases. In urban areas, the cost of gram rose by 15%, pulses by 13.48%, and eggs increased by 7.33%. Notable hikes were also observed in white gram (5%), onions (5%), spices (3.32%), and ready-made food items (2.54%). Meat and potatoes also became more expensive, with price increases of 2.37% and 1%, respectively.
On an annual basis, the overall prices of food items have decreased by 0.59%, although perishable goods saw an increase of 20.37%.
Non-food items also experienced price hikes compared to last year, with clothing and footwear prices surging by 15.52%. Housing, water, electricity, and gas costs rose by 20.86%, while health services and education saw increases of 13.69% and 12.57%, respectively. Beverages and tobacco prices rose by 6.67% over the year. However, transport fares provided some relief with a 7.26% decrease during the same period. Hotel and restaurant charges increased by 9.14% compared to last year, further contributing to inflation in the services sector.
This sharp reduction in inflation offers relief to both the public and the government, which has faced pressure to stabilize prices amidst fluctuating global markets and ongoing economic challenges.
