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Pakistan's Inflation Drops to 4.9% in November 2024: PBS Data
Pakistan's inflation rate eases to 4.9% in November, marking a significant reduction from last year’s peak.
ND
by News Desk
2024-12-02
Pakistan's Inflation Drops to 4.9% in November 2024: PBS Data

Pakistan's annual consumer price index (CPI) inflation rate decreased to 4.9% in November 2024, according to data released by the Pakistan Bureau of Statistics (PBS). This marks a significant decline from 7.2% in October 2024 and a sharp drop from the 29.2% recorded in November 2023.

The drop in inflation comes after months of easing from a historic high of 38% last year, providing some relief ahead of the upcoming meeting of the State Bank of Pakistan (SBP)’s Monetary Policy Committee on December 16, which will review the current policy rate of 15%.

Key Inflation Trends

  • Urban Areas: In urban areas, food items like pulse gram, besan, and moong experienced significant price increases, while non-food items such as motor vehicle taxes, footwear, and dental services saw notable hikes.
  • Rural Areas: Rural areas also witnessed rising food prices, including for pulse gram, besan, and milk powder. Non-food items like motor vehicle taxes and education costs saw increases as well.

On a month-on-month (MoM) basis, inflation increased by 0.5% in November, compared to 1.2% in October.

Outlook
Despite this recent drop, the SBP has refrained from aggressive monetary easing, as its goal remains to bring inflation down to a medium-term target of 5-7% by September 2025. This requires continued economic and monetary adjustments.

Topline Securities, a brokerage firm in Karachi, highlighted that November's CPI reading is the lowest in 78 months, with inflation averaging 7.88% during the first five months of the fiscal year 2025, compared to 28.62% during the same period last year.
Tagged:

CPI

PakistanEconomy

MonetaryPolicy

EconomicTrends

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