The Ministry of Finance has announced that inflation during the first six months of fiscal year 2024-25 (July-December) declined to 7.2% compared to 28.8% in the corresponding period last year.
Last month, the Pakistan Bureau of Statistics recorded inflation of 4.1%, the lowest in 80 months. In April 2018, inflation was recorded at 3.96%.
The ministry has attributed the sharp decline in inflation to exchange rate stability, prudent fiscal management, and improved supply arrangements for essential commodities. Strict action against illegal foreign exchange companies, smuggling, and hoarding has helped stabilize the exchange rate, boost market confidence, and ensure a steady supply of goods.
The Sensitive Price Index (SPI), which tracks the weekly price movement of 51 essential items, has shown a continuous decline over the last four weeks of January 2025. In the week ending Jan. 23, the SPI decreased by 0.77%. During this period, prices of 12 items decreased, 14 increased, and 25 remained stable, indicating overall stability or a downward trend in the prices of essential goods.
The Economic Coordination Committee (ECC) had observed an abnormal increase in the prices of pulses and chicken in early November and taken corrective measures. Resultantly, the price of gram pulse declined by Rs. 52.5/kg (from Rs. 411.3 to Rs. 358.8), while mash pulse decreased by Rs. 37.4/kg (from Rs. 528.3 to Rs. 490.9). Similarly, chicken prices dropped by Rs. 20.1/kg (from Rs. 460.6 to Rs. 440.5), and the price of a 20kg wheat flour bag reduced from Rs. 2,816.5 to Rs. 1,794.3.
The Finance Division has noted that significant price reductions were observed in tomatoes, potatoes, pulses, eggs, and LPG in the past four weeks. The latest data released by the Pakistan Bureau of Statistics (PBS), it states, confirms that policy interventions, administrative measures, and relief efforts are effectively controlling inflationary pressures.