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Pakistan's CPI Drops to 6.9% in September, Well Within Central Bank's Target
Pakistan's consumer price index (CPI) for September stands at 6.9% YoY, falling within the State Bank's target range of 5-7% for 2025. The decline reflects effective monetary tightening, with food prices showing mixed trends.
ND
by News Desk
2024-10-01
Pakistan's CPI Drops to 6.9% in September, Well Within Central Bank's Target

Pakistan’s consumer price index (CPI) registered a year-on-year (YoY) inflation rate of 6.9% in September, according to data released by the Pakistan Bureau of Statistics (PBS) on Tuesday. This figure falls well within the central bank’s target range of 5 to 7 percent for the next fiscal year, indicating positive movement towards achieving macroeconomic stability.

 

The State Bank of Pakistan (SBP) has refrained from aggressive monetary easing to meet its medium-term inflation target of 5 to 7 percent by September 2025. In a notable trend, the CPI decreased by 0.5% month-on-month (MoM) in September, following a previous increase of 0.4% in August. The CPI serves as a vital measure of household inflation, reflecting price changes in various categories of household expenditure.

 

Expert Insights

Mohammed Sohail, Chief Executive of Topline Securities, attributed the decrease in inflation to the SBP’s "aggressive monetary tightening." He remarked, “The SBP has successfully brought inflation below 7% one year ahead of target,” highlighting the effectiveness of recent fiscal measures.

 

In August, the inflation rate had peaked at 9.6% YoY, marking a 34-month low and indicating significant progress in the government's efforts to stabilize prices. Prime Minister Shehbaz Sharif expressed satisfaction over the shift to single-digit inflation, crediting the government’s economic team for their hard work. Meanwhile, the finance minister noted that the successful completion of the standby agreement with the International Monetary Fund (IMF) contributed to the declining inflation figures.

 

Year-on-Year Price Changes

Urban Areas:

 

Food Items with Notable Price Increases:

 

Onions: +78%

Pulse Gram: +56.98%

Besan: +47.53%

Fish: +29.85%

Fresh Vegetables: +29.17%

Milk Powder: +21.09%

Chicken: +21.08%

Non-Food Items with Notable Price Increases:

 

Gas Charges: +318.74%

Motor Vehicle Tax: +168.79%

Dental Services: +29.47%

Cotton Cloth: +19.63%

Rural Areas:

 

Food Items with Notable Price Increases:

 

Onions: +89.74%

Pulse Gram: +48.05%

Besan: +39.23%

Milk Powder: +26.07%

Beans: +24.29%

Meat: +23.27%

Non-Food Items with Notable Price Increases:

 

Motor Vehicle Tax: +126.61%

Education: +22.73%

Personal Effects: +22.05%

Cotton Cloth: +19.19%

Communication Services: +18.70%

Month-on-Month Price Changes

Urban Areas:

 

Food Items with Notable Price Increases:

 

Besan: +14.67%

Pulse Gram: +13.48%

Eggs: +7.33%

Gram Whole: +4.98%

Onions: +4.94%

Condiments and Spices: +3.32%

Non-Food Items with Notable Price Increases:

 

Electrical Appliances for Personal Use: +3.02%

Dental Services: +3.01%

Postal Services: +2.48%

Newspapers: +2.39%

Rural Areas:

 

Food Items with Notable Price Increases:

 

Besan: +14.40%

Onions: +12.75%

Pulse Gram: +10.12%

Eggs: +8.54%

Gram Whole: +4.54%

Meat: +3.74%

Non-Food Items with Notable Price Increases:

 

Water Supply: +5.19%

Personal Effects: +2.68%

Dental Services: +2.38%

Construction Input Items: +1.88%

Conclusion

The latest CPI figures reflect a positive trend in Pakistan’s inflation management and economic policies. With inflation rates falling to single digits, the government remains focused on maintaining macroeconomic stability and navigating the ongoing challenges in the global economic landscape.
Tagged:

SBP

inflation

CPI

PakistanEconomy

EconomicStability

MonetaryPolicy
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