Pakistan’s inflation rate has dropped to a 44-month low of 6.93% in September 2024, as per the Pakistan Bureau of Statistics (PBS). This marks the second consecutive month of single-digit inflation, following August’s 9.6%. The decline is a significant shift from September 2023, when inflation stood at 31.4%, and follows a peak of 38% in May 2023. The first quarter of the fiscal year 2024-25 also saw average inflation of 9.19%.
Prime Minister Shehbaz Sharif expressed satisfaction with this development, crediting government efforts and the IMF’s support. Stabilizing commodity prices and the strengthening of the rupee have been highlighted as contributing factors to the decline. However, economists caution that the drop is partly due to a base effect, comparing figures to last year’s elevated rates.
With a positive real interest rate of 10.57%, economists are urging the State Bank of Pakistan to lower its policy rate to stimulate economic growth.
