Pakistan’s inflation dropped to 6.9% year-on-year in September 2024
Pakistan’s headline inflation dropped to 6.9% year-on-year in September 2024, down from 9.6% in August, according to the Pakistan Bureau of Statistics (PBS).
This marks the lowest inflation rate since January 2021. A month-on-month CPI decrease of 0.5%, alongside falling global commodity prices and a stable exchange rate, has contributed to this decline. Urban inflation stood at 9.3%, while rural inflation fell to 3.6%.
The State Bank of Pakistan (SBP) responded with a 200 bps rate cut, bringing the policy rate to 17.5%. Economic conditions have improved significantly since inflation peaked at 38% in May 2023.
