Pakistan’s Inflation Rate Drops to 6.9% in September
According to the Pakistan Bureau of Statistics (PBS), Pakistan’s consumer price index (CPI) in September was recorded at 6.9% year-on-year. This figure falls within the central bank’s target range of 5 to 7% for the upcoming year. The State Bank of Pakistan (SBP) refrained from aggressive monetary measures to ensure inflation remains under control.
In August, inflation stood at 9.6% year-on-year, marking a 34-month low. The Prime Minister and Finance Minister have credited the government’s economic team for achieving a single-digit inflation rate. The successful completion of a stand-by agreement with the International Monetary Fund (IMF) has also contributed to this decline in inflation.
On a month-on-month basis, inflation decreased by 0.5% in September compared to the previous month. Both urban and rural areas saw increases in food and non-food item prices, with notable spikes seen in categories like onions, pulse gram, besan, and motor vehicle tax.
Overall, the ease in inflation has been attributed to the SBP’s monetary tightening efforts. With inflation now below 7%, Pakistan is on track to achieve its medium-term target of 5 to 7%.
