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Over 9-year low: Inflation in Pakistan clocks in at 2.4% in January 2025

Pakistan’s headline inflation clocked in at 2.4% on a year-on-year basis in January 2025, a reading below that of...
Published February 3, 2025

Pakistan’s headline inflation clocked in at 2.4% on a year-on-year basis in January 2025, a reading below that of December 2024 when it stood at 4.1%, showed Pakistan Bureau of Statistics (PBS) data on Monday.

On a month-on-month basis, CPI increased by 0.2% in January 2025 as compared to 0.1% in the previous month and an increase of 1.8% in January 2024.

This is the “lowest reading in 111 months,” said Topline Securities.

Experts attributed the decline in inflation to a high base effect and lower food inflation.

CPI inflation average during 7MFY25 stood at 6.5% as compared to 28.73% in 7MFY24.

Inflation in Pakistan has been a significant and persistent economic challenge, particularly in recent years. In May 2023, the CPI inflation rate hit a record high of 38%. However, it has been on a downward trajectory since then.

Days ago, the Finance Division said that policy interventions and administrative actions successfully controlled inflation, leading to a reduction in the prices of essential items.

Last month, in line with expectations, the Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) reduced the key policy rate by 100 basis points (bps), taking it down to 12%.

This was the sixth successive cut in the key interest rate since June 2024 when it stood at 22%.

After the policy rate decision, Governor SBP Jameel Ahmad told a presser that inflation would ease further in January before inching up in the subsequent months.

Meanwhile, the latest CPI reading was even lower than the projections made by several brokerage houses.

JS Global projected inflation reading to clock below 3% in January.

“Ongoing sharp disinflation trend is expected to persist, with Jan-2025 CPI likely to fall to 2.8% (lowest since Nov-2015 owing to a high base affect), despite 0.6% MoM uptick,” the brokerage house said.

A similar reading was given by Ismail Iqbal Securities Limited, another brokerage house.

“Inflation for Jan’25 is projected at 2.9%, sharply down from 28.3% the same period last year, reflecting a significant easing in price pressures,” it said.

Urban, rural inflation

The PBS said CPI inflation urban decreased to 2.7% on year-on-year basis in January 2025 as compared to 4.4% in the previous month and 30.2% in January 2024.

On month-on-month basis, it increased to 0.2% in January 2025 as compared to negative change of 0.1% in the previous month and an increase of 1.8% in January 2024.

CPI inflation rural decreased to 1.9% on year-on-year basis in January 2025 as compared to 3.6% in the previous month and 25.7% in January 2024.

On month-on-month basis, it increased by 0.2% in January 2025 as compared to 0.3% in the previous month and an increase of 1.9% in January 2024.

Comments

200 characters
Arif Feb 03, 2025 01:19pm
Can someone share the address of the store or market from where PBS buy their daily groceries ?
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Rebirth Feb 03, 2025 02:21pm
The 1000 basis points gap between the inflation and the interest rate is proof that we need a new SBP governor.
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SAd Feb 03, 2025 02:22pm
People were questioning policies and practices of our Govt and see how much we have achieved in just one year. From 30%+ inflation to 2.4%, this is what a democratic govt could achieve
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Adeel Feb 03, 2025 06:04pm
Kon log ho Bhai tum..... Inflation rate big joke ????????????????????????????
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Salman Ali Feb 03, 2025 06:18pm
Kinnow 600 dozen
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KU Feb 03, 2025 06:23pm
The least PBS can do is to write in it's data footnotes "errors n omissions accepted due to nature of dishonest official character". Giving a bad name to country it is by primates.
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Mr okay Feb 04, 2025 02:17am
Who says inflation is reduced. From where they are buying groceries, I think the writer also got some cheap money for this publicity stunt on behest of the goons
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Az_Iz Feb 04, 2025 03:44am
Inflation is down,means prices are not increasing as fast,compared to last year.It does not mean, prices are decreasing.
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Annonymus Feb 04, 2025 11:08am
@Salman Ali, Bhai 375/- Maine buy kiye hain A+ Quality. Don't Misguide please.
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Aam Aadmi Feb 04, 2025 09:04pm
BR, please do not just reproduce what PBS and other government deptts say. Have an independent survey of the market and base your news item on your findings. Inflation has not come down. Not at all.
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M Umar Abid Feb 05, 2025 04:21pm
I have no words for this bias article. Our cost of living is very high as compare to our minimum wage. Electricity and other power costs are so high along food and taxes.
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M Umar Abid Feb 05, 2025 04:24pm
@Salman Ali, basically it's near about 600 as those are being sold in kgs good quality minimum 200/kg. Yes approximately near about 600.
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