The Finance Division has said that policy interventions and administrative actions have successfully controlled inflation, leading to a reduction in the prices of essential items.
In a statement released on Thursday, the Finance Division shared that the Consumer Price Index (CPI)- based inflation has declined to 7.2%, during the first six months of FY2025 (July-December), compared to 28.8% in the same period last year.
In December 2024, the inflation rate was recorded at 4.1%, the lowest in 80 months i.e. since April 2018, when it stood at 3.96%.
“The sharp decline in inflation is attributed to exchange rate stability, prudent fiscal management, and improved supply arrangements for essential commodities,” it said.
Additionally, strict action against illegal foreign exchange companies, smuggling, and hoarding has helped stabilize the exchange rate, boost market confidence, and ensure a steady supply of goods, the statement read.
Moreover, the Sensitive Price Index (SPI), which tracks the weekly price movement of 51 essential items, has shown a continuous decline over the last four weeks of January 2025.
For the week ending on 23rd January 2025, the SPI decreased by 0.77%. During this period, prices of 12 items decreased, 14 increased, and 25 remained stable, indicating overall stability or a downward trend in the prices of essential goods, it said.
The Finance Division noted that the Economic Coordination Committee (ECC) observed an abnormal increase in the prices of pulses and chicken in early November and took corrective measures.
As a result, the price of gram pulse declined by Rs52.5 per kg to Rs358.8, and mash pulse decreased by Rs37.4 per kg to Rs490.9.
Similarly, chicken prices dropped by Rs20.1 per kg to Rs440.5, and the price of a 20kg wheat flour bag fell significantly from Rs2,816.5 to Rs1,794.3, a reduction of Rs1,022.2.
It noted that over the past four weeks, significant price reductions have been observed in tomatoes, potatoes, pulses, eggs, and LPG.
“The latest data released by the Pakistan Bureau of Statistics (PBS) confirms that policy interventions, administrative measures, and relief efforts are effectively controlling inflationary pressures,” the statement concluded.
Comments
Comments are closed for this article.