Pakistan’s headline inflation rate was 9.6% year on year in August 2024, down from 11.1% in July 2024.
After three years, inflation has returned to single digits, according to figures from the Pakistan Bureau of Statistics (PBS).
In October 2021, CPI inflation amounted at 9.2%.
On a monthly basis, CPI climbed to 0.4% in August 2024, compared to 2.1% the previous month and 1.7% in August 2023.
The results are likewise consistent with official predictions. In its monthly economic outlook issued on Friday, the finance ministry noted that inflation in August is expected to range between 9.5% and 10.5%.
In its “Monthly Economic Update and Outlook,” the Ministry of Finance stated that inflation is anticipated to stay between 9.5 and 10.5% in August 2024 and then drop to 9 to 10% in September 2024 due to stability in economic indicators.
The State Bank of Pakistan (SBP) announced that there are “risks to the inflation outlook from fiscal mistakes and ad hoc decisions related to energy price adjustments” at its most recent Monetary Policy Committee (MPC) meeting in July. As a result, the SBP lowered the key policy rate by 100 basis points, to 19.5%.
Pakistan has had a serious and ongoing economic problem from inflation, especially in recent years. The CPI inflation rate reached a record high of 38% in May of last year. But from that point on, it has been declining.
