Inflation in Pakistan dropped to 4.9% in November 2024, a sharp decline from 7.2% in October, as reported by the Pakistan Bureau of Statistics (PBS). This is the lowest inflation rate the country has seen in more than six years, with the last such low recorded in May 2018.
On a monthly basis, prices increased by 0.5% in November, which is less than the 1.2% rise seen in October. For the first five months of the current financial year (FY25), the average inflation rate was 7.88%. This is significantly lower compared to the same period last year, which saw a much higher average of 28.62%.
Urban areas experienced a drop in inflation to 5.2%, while rural inflation showed a slight rise to 4.3%. The overall decline in inflation has created optimism about potential cuts in the State Bank of Pakistan’s policy rate, which could help improve economic conditions further.
This reduction in inflation is seen as a positive development for Pakistan’s economy. It brings relief to households struggling with high living costs and signals better financial stability. Lower inflation could also encourage investment and support economic growth in the country.
With this steady downward trend, policymakers and businesses are hopeful for a more stable and affordable economic environment in the coming months.
