Pakistan inflation falls to 34-month low in August

Pakistan’s headline inflation clocked in at 9.6% on a year-on-year basis in August compared to 11.1% in the last month and 27.4% in August 2023, the latest data issued by the Pakistan Bureau of Statistics (PBS) on Monday showed.

The inflation reading was back into single-digits after a span of three years, showed Pakistan Bureau of Statistics (PBS) data.

Back in October 2021, CPI inflation stood at 9.2%.

On a month-on-month basis, CPI increased to 0.4% in August 2024 as compared to an increase of 2.1% in the previous month and an increase of 1.7% in August 2023.

In its monthly economic outlook, the finance ministry had stated that it expects inflation in August to range between 9.5% and 10.5%.

 

“On the account of stability in economic indicators, inflation is expected to remain within the range of 9.5-10.5% in August and further decline to 9-10% in September 2024,” the Ministry of Finance said in its ‘Monthly Economic Update and Outlook’.

Earlier, Prime Minister Shehbaz Sharif has expressed satisfaction over the reduction in inflation and economic indicators, noting a significant decrease in the Consumer Price Index (CPI) in July.

The inflation rate has dropped to 11%, the PM Shehbaz Sharif stated, adding that predictions for further reductions in September are promising.

He highlighted that Moody’s has upgraded Pakistan’s credit rating, acknowledging the country’s positive economic indicators. Global financial institutions have recognised these improvements, he added