Pakistan’s Inflation Drops to 7.2% in First Half of Fiscal Year 2025
Islamabad:The Ministry of Finance has reported a significant decrease in inflation during the first half of fiscal year 2025, with the inflation rate standing at 7.2%, a sharp decline from 28.8% recorded during the same period last year. In December 2024, inflation dropped to 4.1%, marking the lowest level in 80 months (since April 2018).
In a statement, the Ministry credited the decline in inflation to the stability of the exchange rate, fiscal discipline, and improved supply chains. Additionally, strong actions against illegal foreign exchange companies, smuggling, and hoarding were also highlighted as contributing factors to this success.
The statement further noted that the Sensitive Price Index (SPI) showed a continuous decline in the last four weeks of January 2025. In the week ending on January 23, 2025, the SPI recorded a 0.77% decrease. Of the 51 items monitored, 12 saw price reductions, 14 experienced price hikes, and 25 items remained stable.
The Economic Coordination Committee (ECC) had taken notice of the abnormal price increases in pulses and poultry in November. Following government interventions, the price of chickpeas dropped by 52.5 rupees per kg, masoor dal by 37.4 rupees per kg, while the price of chicken fell by 20.1 rupees per kg. Additionally, the price of a 20 kg bag of flour decreased by 1022.2 rupees. In the past four weeks, there have also been notable reductions in the prices of tomatoes, potatoes, pulses, eggs, and LPG.
According to the latest data from the Pakistan Bureau of Statistics, government policy measures, administrative actions, and relief efforts have been effective in managing inflationary pressures.
