Inflationary success — an illusion in real terms

Only real gentlemen can win the hearts of proud, beautiful women. Only economic wizards can dare court price stability. Reaching the goal takes years of honest, patient, persistent actions. Honesty and perseverance count at every stage of taming inflation just as they count in a true love-affair journey. Inflation in Pakistan has eased off because of the high base of last year, partial pass-offs of periodic softening of global fuel oil prices and gradual pass-through of lower import costs due to a stable rupee — all amidst suppressed aggregate demand in the domestic economy. Some progress made towards fiscal management controlled energy price hiking in October-December 2024 compared to the year before, rapid monetary easing, producers’ compromise on profit margins and lower allocation for pricier products by households and businesses has also contributed to lower inflation.