CPI inflation in Pakistan slows to 2.41%, sharpest decline in nine years

Pakistan's consumer price index (CPI) inflation dropped to 2.41% year-on-year (YoY) in January 2025, marking its lowest level in 111 months, according to data released by the Pakistan Bureau of Statistics (PBS) on Monday. The inflation rate reflects a sharp disinflationary trend, down from 4.1% in December 2024 and significantly lower than 28.3% in January 2024. On a month-on-month (MoM) basis, inflation saw a slight increase of 0.2% in January, compared to 0.1% in the previous month. Financial analysts note that the declining inflation rate is a major shift from last year's record highs, providing some relief to consumers. However, key food and non-food items continued to witness notable price hikes, particularly in the rural sector.