Pakistan’s consumer price index (CPI) in August rose 9.6 per cent year-on-year (YoY), marking a 34 month-low, data from the Pakistan Bureau of Statistics (PBS) showed on Monday.
The CPI measures household inflation and includes statistics about price change for categories of household expenditure.
“CPI general inflation increased to 9.6pc on year-on-year basis in August 2024 as compared to an increase of 11.1pc in the previous month and 27.4pc in August 2023,” PBS said. The monthly inflation rate was 0.39pc, the PBS said.
According to Karachi-based brokerage firm, Topline Securities, the reading for August “is at 34 months low”. “This takes 2MFY25 average inflation to 10.36pc compared to 27.84pc in 2MFY24,” it said in a comment. The data showed that urban inflation increased by 11.7pc while rural inflation increased by 6.7pc in August.
Prime Minister Shehbaz Sharif expressed satisfaction over the report.
“With the grace of Allah, the hard work of the government’s economic team is bearing fruit,” the prime minister said in a statement issued by Prime Minister’s Office.
The inflation rate dropping to 9.6% in August is a reflection of the government’s efforts to improve the economy, the prime minister said. “This is the lowest inflation rate in the past three years, and credit goes to the tireless work of our economic team,” he added.
He noted that the reduction in inflation aligns with the Ministry of Finance’s economic outlook report, which had forecast inflation to be between 9.5% and 10.5% for August 2024. “The prediction by economic experts of a further reduction in inflation in September is no less than good news for the nation,” Shehbaz stated.
The prime minister recalled that inflation was in single digits in 2018 as well. “Between 2018 and the next four years, the economy suffered due to criminal negligence and anti-people policies, leading to record inflation and causing hardship for the public,” he remarked.
“We sacrificed our politics to save the national economy from bankruptcy,” Shehbaz declared.
He praised his economic team’s efforts, saying their hard work had not only stabilised the economy but also set it on a path towards growth.
“After taking on the responsibilities as a servant of Pakistan, I made a promise to the people that I would not rest until their difficulties were alleviated,” Shehbaz said. “By the grace of Almighty Allah, we are moving towards fulfilling that promise.” The prime minister emphasised that the positive outcomes of the government’s economic reforms are beginning to reach the people in the form of prosperity.
“The goal of Pakistan’s development cannot be achieved without improving the lives of ordinary citizens and ensuring their economic well-being,” he concluded.
Speaking on the development in the National Assembly, Information Minister Attaullah Tarar said the decrease was the “proof of success” under the prime minister’s leadership.
He said inflation had reached the single digits due to the government’s measures.
