CPI inflation hits near seven-year low at 4.1pc

The annual inflation maintained a sharp deceleration trend, hitting an 81-month low at 4.1 per cent in December due to a decrease in the prices of perishable food products. The current situation in Pakistan reflects disinflation, which signifies a slowdown in inflation. In contrast, deflation occurs when the general price levels decline. According to the Pakistan Bureau of Statistics, the average accumulative inflation over the last 47 months increased by 81.51pc, reflected in the retail prices of all consumer items during the period under review. This low inflation does not reflect that the cost of living has come down. The average inflation for six months (Jan-June FY21) was 9.2pc, followed by 12.5pc in FY22, 29.18pc in FY23, 23.41pc in FY24, and 7.22pc in the first half of FY25. The data shows a price rise since January 2021, contradicting the government’s assertions that prices have declined.