Inflation slumps to 9-year low at 4.49pc
The annual inflation rate dropped sharply to 4.49 per cent during the fiscal year 2024-25 from 23.41pc in the previous year, mainly due to high base effect, a decline in food prices and lower transport costs, the government announced on Tuesday. This marks the lowest inflation rate since FY16, when it stood at 2.9pc — a nine-year low. Pakistan is currently experiencing disinflation, which reflects a slowdown in the rate of inflation, as opposed to deflation, which indicates a general decline in overall price levels. According to the Pakistan Bureau of Statistics (PBS), average cumulative inflation over the past 53 months has risen by 83pc, significantly affecting retail prices of consumer goods. Despite the recent decline in inflation, the cost of living remains elevated.