ISLAMABAD: The inflation rate in Pakistan has fallen to 4.1% in December 2024, marking the lowest level in 80 months, or since April 2018.
This sharp decline comes after the inflation rate for the first half of the financial year 2025 was recorded at 7.2%, a significant drop from the 28.8% registered during the same period last year, the Finance Ministry announced today.
In a statement, the Finance Ministry attributed the drop in inflation to a combination of factors, including exchange rate stability, strict financial discipline, and improvements in supply chains.
Moreover, the government’s crackdown on illegal foreign exchange companies, smuggling, and hoarding has been crucial in curbing inflation.
The ministry further stated that the Sensitive Price Index (SPI), which tracks the prices of essential goods, showed a consistent decline in the last four weeks of January 2025.
The SPI decreased by 0.77% in the week ending January 23, with 12 out of 51 items experiencing a price reduction. Notably, 14 items saw price hikes, while 25 items remained stable.
The Economic Coordination Committee (ECC) had previously expressed concerns over the surge in prices of pulses and poultry in November.
Following government intervention, prices of essential commodities were brought down. For instance, the price of gram dal fell by Rs 52.5 per kg, while dal mash dropped by Rs 37.4 per kg. Poultry prices also saw a decrease of Rs 20.1 per kg, and the price of a 20 kg bag of flour was reduced by Rs 1,022.2.
In recent weeks, prices of tomatoes, potatoes, pulses, eggs, and liquefied petroleum gas (LPG) have also shown significant reductions, contributing further to the easing of inflationary pressures.
According to the latest data released by the Bureau of Statistics, the government’s proactive policy measures, along with administrative and relief actions, have played a key role in controlling inflation and providing much-needed relief to consumers.
