According to a report released by the Statistics Bureau, inflation in Pakistan has dropped to single digits for the first time in almost three years, with the inflation rate recorded at 9.64% in August.
The Statistics Bureau issued its monthly report on inflation, revealing that the inflation rate has reached its lowest level in 34 months, standing at 9.64% in August. This is the first time since October 2021 that the inflation rate in the country has been recorded in single digits.
The report stated that in August 2024, the annual Consumer Price Index (CPI) inflation rate was 9.6%, compared to 11.1% in the previous month, resulting in a monthly inflation rate of 0.39%. In contrast, the inflation rate in August 2023 was 27.4%.
According to Karachi-based brokerage firm Topline Securities, August's reading is "at the lowest level in 34 months."
Thus, the average inflation rate during the first two months of fiscal year 2025, July and August, was 10.36%, compared to 27.84% during the same period in the previous fiscal year.
The last time inflation in the country was recorded in single digits was in October 2021 during the Pakistan Tehreek-e-Insaf (PTI) government, and this is the first time inflation has returned to single digits since the PTI government left office.
The Statistics Bureau reported that in August, inflation in urban areas increased by 0.27% and in rural areas by 0.55%, resulting in an inflation rate of 11.71% in urban areas and 6.73% in rural areas.
Earlier, Prime Minister Shehbaz Sharif had expressed satisfaction over the reduction in the inflation rate and improvement in other economic indicators.
Prime Minister Shehbaz noted that after Fitch, the global rating agency Moody's recently upgraded Pakistan's credit rating, acknowledging the country's positive economic indicators by international financial institutions.
It is noteworthy that the Ministry of Finance, in its 'Monthly Economic Update and Outlook' report, predicted that inflation in August would remain between 9.5% and 10.5%, with a further decline expected in September, bringing inflation between 9% and 10%.
The report also indicated a positive trend in exports, imports, and remittances, with exports expected to range between $2.5 billion and $3.2 billion in August.
The global rating agency Moody's upgraded Pakistan's credit rating outlook from stable to positive, raising the credit rating from CAA 3 to CAA 2.
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