ISLAMABAD   -   The inflation rate has further declined to 6.9 percent in September this year, which is the lowest level in 44 months.

Inflation measured by consumer price indicator (CPI) was recorded at 6.9 percent in September this year over the corresponding period of the last year, according to the latest data of Pakistan Bureau of Statistics (PBS). It was the third consecutive month when inflation has declined as it was recorded at 11.1 percent in July and 9.6 percent in August this year. For the fiscal year 2024-25, the federal government has set an inflation rate target at 12 percent.

According to the latest data of PBS, the inflation on a monthly basis has decreased by 0.5 percent in September 2024 as compared to an increase of 0.4 in the previous month (August) and an increase of 2 percent in September 2023. The CPI inflation (urban) increased by 9.3 percent on a year-on-year basis in September 2024. Meanwhile, the CPI inflation (rural) has enhanced by 3.6 percent.

The government had already projected that inflation might further fall in September. The ministry of finance had projected that inflation rate would remain within the range of 8 percent in the outgoing month of September and 9 percent in October 2024. “Pakistan’s economy is indicating positive developments during the first two months of FY2025 as most of the economic indicators have shown improvement,” the ministry note in its monthly Update and Outlook September 2024. Inflation has dropped to single digit. CPI inflation receded to single digit, lowest in 34 months in August 2024, recorded at 9.6 percent on year-on-year basis compared to 27.4 percent in the same month last year. On MoM basis, it increased by 0.4 percent in August 2024 compared to an increase of 2.1 percent in the previous month and an increase of 1.7 percent in August 2023.

The break-up of inflation of 6.93 percent showed that food and non-alcoholic beverages prices decreased by 0.59 percent last month. Similarly, health and education charges went up by 13.69 percent and 12.57 percent, respectively. Similarly, prices of utilities (housing, water, electricity, gas and fuel) increased by 20.86 percent in the last month. Meanwhile, the prices of alcoholic beverages and tobacco went up by around 6.67 percent. Prices of clothing and footwear increased by 15.52 percent and furnishing and household equipment maintenance charges 6.62 percent. Recreational charges and those related to culture went up by 7.47 percent in the period under review, while amounts charged by restaurants and hotels by 9.14 percent in September 2024 as compared to the same month last year.

In rural areas, the food items which saw their prices increased included besan (14.40 percent), onions (12.75 percent), pulse gram (10.12 percent), eggs (8.54 percent), gram whole (4.54 percent), meat (3.74 percent), gur (1.95 percent), readymade food (1.69 percent), mustard oil (1.49 percent), nimco (1.37 percent), milk fresh (1.10 percent), dry fruits (1.02 percent) and milk products (0.84 percent). In non-food commodities, prices of following items enhanced water supply (5.19 percent), personal effects (2.68 percent), dental services (2.38 percent), construction input items (1.88 percent), communication apparatus (1.34 percent), cotton cloth (1.29 percent) and education (1.18 percent).

In rural areas, prices of the following items decreased, including tomatoes (18.61 percent), fresh vegetables (16.13 percent), fresh fruits (6.14 percent), wheat (5.46 percent), wheat flour (5.14 percent), wheat products (2.50 percent), fish (1.99 percent), pulse moong (1.92 percent), sugar (1.68 percent), chicken (1.53 percent), pulse masoor (1.17 percent), cooking oil (0.95 percent) and potatoes (0.56 percent).

In urban areas, prices of following commodities increased including besan (14.67 percent), pulse gram (13.48 percent), eggs (7.33 percent), gram whole (4.98 percent), onions (4.94 percent), condiments and spices (3.32 percent), readymade food (2.54 percent), meat (2.37 percent), sweetmeat (2.21 percent), potatoes (0.98 percent), fish (0.82 percent), gur (0.72 percent), rice (0.70 percent), dry fruits (0.66 percent), vegetable ghee (0.36 percent), milk products (0.33 percent) and milk fresh (0.27 percent).