Pakistan inflation slows to three-year low

Pakistan’s headline inflation clocked in at 11.1% on a year-on-year basis in July 2024, Pakistan Bureau of Statistics (PBS).

This is the lowest CPI figure since November 2021 when it stood at 11.5%, the report said.

On a month-on-month basis, CPI inflation increased by 2.1% in July 2024 as compared to rise of 0.5% last month.

The PBS said CPI inflation urban clocked in at 13.2% on year-on-year basis in July 2024, as compared to an increase of 14.9% in the previous month and 26.3% in July 2023.

On month-on-month basis, it increased to 2.0% in July 2024 as compared to an increase of 0.6% in the previous month and an increase of 3.6% in July 2023.

CPI inflation rural increased to 8.1% on year-on-year basis in July 2024 as compared to an increase of 9.3% in the previous month and 31.3% in July 2023.

On month-on-month basis, it increased to 2.2% in July 2024 as compared to an increase of 0.3% in the previous month and an increase of 3.3% in July 2023.

The Asian Development Bank in its reported, released last month, predicted a 7% decrease in Pakistan’s debt volume.

According to the report, the debt volume is expected to decrease from 77% to 70% of the country’s GDP.

The report also states that 62% of Pakistan’s revenue will be spent on debt repayment in the current fiscal year. Additionally, the report predicts that inflation will remain high in Pakistan in the current fiscal year.