Pakistan’s inflation rate dropped to 4.9% in November 2024, marking its lowest level in over six years. This is a significant improvement compared to 7.2% in October, according to the Pakistan Bureau of Statistics (PBS). The last time inflation was this low was in May 2018, making it an 80-month record.
On a monthly basis, the Consumer Price Index (CPI) increased by 0.5% in November, which is lower than the 1.2% rise recorded in October.
During the first five months of the current fiscal year (FY25), the average inflation rate was 7.88%, a sharp decline from the 28.62% recorded in the same period last year. Urban areas experienced a slight increase in inflation to 5.2%, while rural areas saw a drop to 4.3%.
This steady decline in inflation has sparked optimism for further cuts in the State Bank of Pakistan’s policy interest rate. Lower inflation could provide some relief to consumers and businesses, supporting economic stability in the country.
The downward trend is seen as a positive development, offering hope for improved economic conditions. Analysts believe that this disinflationary phase could pave the way for reduced borrowing costs, stimulating investment and growth in Pakistan.
With inflation under control, Pakistan appears to be on track for a more stable economic outlook, benefiting both urban and rural populations.
