Inflation Rate Drops to Lowest Level in Almost 4 Years

Pakistan’s headline inflation rate fell to 6.9 percent year-on-year in September 2024, marking a significant decrease from August’s 9.6 percent and remaining in the single-digit territory second month in a row, according to data from the Pakistan Bureau of Statistics (PBS). According to Arif Habib Limited, this is the lowest rate of inflation recorded in 45 months i.e. since January 2021. On a month-on-month basis, the Consumer Price Index (CPI) fell by 0.5 percent in September 2024 compared to an increase of 0.4 percent in the previous month and an increase of 2.0 percent in September 2023. Core inflation, measured by non-food non-energy, increased 10.4 percent YoY in September 2024 as compared to an increase of 11.9 percent YoY in the previous month and an increase of 22.1 percent YoY in September 2023. On a monthly basis, the average core CPI increased 0.3 percent in September 2024 as compared to an increase of 0.5 percent in the previous month and an increase of 1.6 percent in September 2023.