ISLAMABAD: Beating official forecasts, Pakistan’s inflation slowed to 4.9% year-on-year in November 2024, down from 7.2% in October, marking its lowest level in six-and-a-half years, according to data released by the Pakistan Bureau of Statistics (PBS) on Monday.
On a month-on-month basis, the Consumer Price Index (CPI)-based inflation rose by 0.5% in November, compared to a 1.2% increase in October and a 2.7% rise in November 2023.
The average headline inflation during the first five months of FY2025 stood at 7.88%, sharply lower than 28.62% in the corresponding period of FY2024.
According to a report by Topline Securities, this marks the lowest inflation reading in 78 months. The November reading also came in well below official forecasts, signalling a significant cooling in price pressures.
Last month, the finance ministry, in its monthly economic report, said inflation is projected to slow to 5.8%-6.8% in November, and then further to 5.6%-6.5% in December.
“Inflation is expected … [to] further recede to 5.6% – 6.5% by December 2024,” said the Finance Division in its Monthly Economic Update and Outlook.
The central bank slashed interest rates by 250 basis points earlier in November in a bid to revive a sluggish economy amid a big drop in the rate of inflation.
According to Pakistan Bureau of Statistics (PBS) data, inflation sharply dropped to 7.2% in October from a multi-decade high of nearly 40% in May 2023, while it was slightly higher than 6.9% in September 2024.
