Core inflation, as measured by the Consumer Price Index (CPI), eased to 4.9% in November 2024, down from 7.2% in October 2024, according to data released by the Pakistan Bureau of Statistics (PBS) on Monday.
According to a report by APP, the data shows CPI-based inflation for November 2023 was significantly higher at 29.2%. On a month-to-month basis, CPI increased by 0.5% in November 2024, compared to a rise of 1.2% in October 2024 and 2.7% in November 2023.
“Inflation, as measured by CPI, has hit a multi-year low,” noted Khurram Schehzad, Advisor to the Finance Minister on Economic and Financial Reforms, in a post on X. He highlighted that the current inflation rate is the lowest in 6.5 years, impacting the common population, businesses, and the government’s fiscal position.
Schehzad expressed optimism that this low inflation pace could lead to further monetary easing, reducing borrowing costs for businesses and industries and enabling higher savings on government debt servicing. This, he said, could improve fiscal balance in the months ahead.
Urban CPI inflation dropped to 5.2% year-on-year in November 2024, compared to 9.3% in October 2024 and 30.4% in November 2023. On a monthly basis, it rose by 0.5% in November 2024, down from 1.1% in October 2024 and 4.3% in November 2023.
In contrast, rural CPI inflation increased by 4.3% year-on-year in November 2024, slightly higher than the 4.2% recorded in October 2024 but much lower than the 27.5% reported in November 2023. On a month-to-month basis, rural inflation rose by 0.5% in November 2024, compared to a 1.5% increase in October 2024 and 0.4% in November 2023.
The Sensitive Price Index (SPI) inflation on a year-on-year basis declined to 7.3% in November 2024, down from 9.7% in October 2024 and 30.6% in November 2023. On a monthly basis, SPI rose by 1.0% in November 2024, compared to a 0.6% increase in the previous month and 3.3% in November 2023.
