The inflation rate in Pakistan has dropped to 4.1% in December 2024, marking the lowest level in 80 months, since April 2018.
This sharp decline follows the inflation rate for the first half of the financial year 2025, which was recorded at 7.2%, a significant drop from 28.8% during the same period last year, as announced by the Finance Ministry today.
The ministry attributed the decline in inflation to several factors, including exchange rate stability, strict financial discipline, and improvements in supply chains.
Additionally, the government’s crackdown on illegal foreign exchange companies, smuggling, and hoarding played a key role in curbing inflation.
The ministry further stated that the Sensitive Price Index (SPI), which tracks essential goods prices, showed a consistent decline over 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 price reductions. However, 14 items saw price hikes, while 25 items remained stable.
The Economic Coordination Committee (ECC) had previously raised concerns over the rising prices of pulses and poultry in November.
Following government intervention, prices of essential commodities were reduced. 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 seen significant reductions, contributing further to easing inflationary pressures.
According to the latest data from the Bureau of Statistics, the government’s proactive policy measures, along with administrative and relief actions, have played a crucial role in controlling inflation and providing much-needed relief to consumers.
The Finance Ministry concluded that these efforts are expected to continue stabilizing prices in the coming months, further alleviating the financial burden on households.
