Pakistan's inflation drops to lowest level in 2 years

ISLAMABAD: Pakistan’s headline inflation clocked in at 17.3% on a year-on-year basis in April, the Pakistan Bureau of Statistics (PBS) said on Thursday.

“This is the lowest reading in the last 23 months (after May 2022),” said Mohammed Sohail, CEO Topline Securities, in a note.

In its monthly report, the ministry said the inflation outlook for April 2024 maintains a downward trajectory, attributed to the favorable base effect from the previous year and improvements in the domestic supply chain of essential items.

As per the Finance Division, the inflation outlook “appears moderate as the government is determined to reduce inflation by actively taking strict administrative measures”.

“Inflation is projected to hover around 18.5- 19.5% in April 2024. However, there are expectations of a gradual easing further to 17.5-18.5% in May 2024.”

Urban, rural inflation

The PBS said CPI inflation urban increased to 19.4% on year-on-year basis in April 2024 as compared to an increase of 21.9% in the previous month and 33.5% in April 2023.

On a month-on-month basis, it decreased to 0.1% in April 2024 as compared to an increase of 1.4% in the previous month and an increase of 2.0% in April 2023.

CPI inflation rural stood at 14.5% on year-on-year basis in April 2024 as compared to an increase of 19% in the previous month and 40.7% in April 2023.

On month-on-month basis, it decreased to 0.9% in April 2024 as compared to an increase of 2.1% in the previous month and an increase of 3% in April 2023.