Pakistan inflation drops to lowest level Since 2015

Pakistan’s inflation rate has dropped to its lowest point since 2015, with January recording a rate of 2.4 percent, according to the Pakistan Bureau of Statistics (PBS).

The inflation has eased significantly, dropping from 28.3 percent in January 2024.

The country’s inflation rate during the first seven months of ongoing fiscal year has dropped to 6.5 percent as against 28.7 percent during the same period of the previous fiscal year.

According to the PBS, inflation increased by 0.2 percent in the urban areas of Pakistan during the previous month.

The prices of chicken rose by 35.26 percent, while moong dal became 5.43 percent more expensive.

The commodities which saw an uptick included fresh fruits (5.01 percent), sugar (3.9 percent), and ghee (2.61 percent).

On the flip side, potatoes dropped by 28.07 percent, tomatoes 20.7 percent, and vegetables recorded a decline of 19.97 percent.

Egg prices fell by 14 percent, while onions became 13.98 percent cheaper in the urban areas.

Meanwhile, in rural areas, inflation rose by 2.41 percent in January on the back of an increase of 33.02 percent in chicken prices and a 4.84 percent hike in the price of moong dal.

Fresh fruits saw a decline of 7.82 percent while sugar price dropped by 4.82 percent.

Pertinent to note here that the State Bank of Pakistan cut its benchmark interest rate by 100 basis points to 12 percent last week, as inflation eased and growth looked set to pick up after 1,000 basis points of rate cuts over the last six months.

The central bank slashed rates from an all-time high of 22 percent last June, one of the most aggressive moves among central banks in emerging markets and exceeding its 625 bps of rate cuts in 2020 during the COVID-19 pandemic.

Earlier, reports said that Utility Stores Corporation recorded a steady increase in monthly sales across Pakistan.

According to sources, sales in January witnessed a 17 percent rise compared to December.

In January 2025, total sales at utility stores amounted to Rs1.8 billion, up from Rs1.53 billion recorded in December.