KARACHI: Consumer price index (CPI) inflation eased significantly to 2.4% year-on-year in January 2025, down from 4.1% in December and a staggering 28.3% recorded in January 2024, according to data released by the Pakistan Bureau of Statistics (PBS) on Monday.
This marks the lowest inflation rate in over two years, reflecting easing price pressures across both urban and rural areas. In FY23, it reached over 29%; inflation touched an all-time high of 37.97% in May 2023. However, it has been on a downward trajectory since then.
On a month-on-month basis, CPI inflation edged up slightly by 0.2% in January, compared to a 0.1% increase in the previous month and a 1.8% rise in January 2024.
According to brokerage firm Topline Securities, inflation during 7MFY25 has averaged at 6.5% compared to 28.73% in 7MFY24. It further adds that this is the “lowest reading in 111 months (over nine years).
Rural inflation followed a similar trend, falling to 1.9% year-on-year in January, down from 3.6% in December and 25.7% in January 2024. Month-on-month, rural inflation rose by 0.2%, slightly lower than the 0.3% increase recorded in the previous month.
