Pakistan’s annual core inflation, as measured by the Consumer Price Index (CPI), further decreased to 9.6% in August 2024, marking the first single-digit inflation rate in nearly three years, according to the Pakistan Bureau of Statistics (PBS).
The PBS reported, “CPI general inflation increased to 9.6% on a year-on-year basis in August 2024, compared to a rise of 11.1% in the previous month and 27.4% in August 2023.”
Since May 2022, Pakistan had been grappling with inflation rates consistently above 20%, peaking at an alarming 38% in May 2023. These high inflation rates coincided with the implementation of economic reforms linked to a critical International Monetary Fund (IMF) bailout program.
Prime Minister Shehbaz Sharif expressed satisfaction with the significant decline in inflation and highlighted the improved credit ratings by international agencies, such as Fitch and Moody’s, as positive developments for the country.
In its monthly economic outlook report, the Ministry of Finance projected that inflation would stabilize between 9.5% and 10.5% in August, with further reductions to between 9% and 10% anticipated in September.
Moody’s Ratings upgraded Pakistan’s local and foreign currency issuer and senior unsecured debt ratings to Caa2 from Caa3, citing improvements in macroeconomic conditions.
Inflation Rate Comparisons
| Metric | August 2024 | July 2024 | August 2023 |
|---|---|---|---|
| CPI Inflation (YoY) | 9.6% | 11.1% | 27.4% |
| CPI Inflation (MoM) | 0.4% | 2.1% | 1.7% |
| Urban Inflation (YoY) | 11.7% | 13.2% | 25.0% |
| Urban Inflation (MoM) | 0.3% | 2.0% | 1.6% |
| Rural Inflation (YoY) | 6.7% | 8.1% | 30.9% |
| Rural Inflation (MoM) | 0.6% | 2.2% | 1.9% |
| SPI Inflation (YoY) | 10.8% | 15.7% | 27.9% |
| SPI Inflation (MoM) | -0.3% | 2.0% | 4.1% |
Monthly and Yearly Price Changes
Month-on-Month (MoM) Price Increases
| Category | MoM Increase (%) |
|---|---|
| Onions | 22.84% |
| Chicken | 13.62% |
| Eggs | 12.39% |
| Fresh Vegetables | 12.25% |
| Besan | 4.88% |
| Pulse Gram | 4.55% |
| Gram Whole | 3.82% |
| Potatoes | 2.90% |
| Pulse Moong | 2.83% |
| Fresh Milk | 1.27% |
| Milk Products | 1.20% |
| Vegetable Ghee | 1.10% |
| Motor Vehicle Tax | 168.79% |
| Stationery | 5.08% |
| Drugs and Medicines | 1.35% |
| Readymade Garments | 1.24% |
| Plastic Products | 1.03% |
| Doctor (MBBS) Clinic Fee | 0.88% |
Year-on-Year (YoY) Price Increases
| Category | YoY Increase (%) |
|---|---|
| Onions | 136.32% |
| Fresh Vegetables | 76.35% |
| Pulse Gram | 42.35% |
| Besan | 31.15% |
| Fish | 28.98% |
| Fresh Fruits | 27.32% |
| Pulse Moong | 25.05% |
| Milk Powder | 24.17% |
| Beans | 23.35% |
| Dry Fruits | 21.10% |
| Meat | 19.04% |
| Gas Charges | 318.74% |
| Motor Vehicle Tax | 168.79% |
| Dental Services | 28.84% |
| Cotton Cloth | 24.17% |
| Woolen Readymade Garments | 23.31% |
| Transport Services | 22.87% |
These figures illustrate a significant moderation in inflation, both on a monthly and yearly basis, highlighting the impact of ongoing economic stabilization measures and improved macroeconomic conditions in Pakistan.
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