Islamabad September 2, 2024: According to data from the Pakistan Bureau of Statistics, headline inflation in August 2024 has dropped to single digits for the first time in 34 months, reaching 9.64 percent.
This is a significant decrease from 27.37 percent YoY in August 2023 and 11.09 percent YoY in July 2024.
The average inflation for the first two months of FY25 stands at 10.36 percent, a notable decline from the 27.84 percent recorded during the same period in FY24.
This reduction was primarily driven by a sharp decrease in food inflation to 2.46 percent YoY and the impact of a higher base. As a result, the real interest rate has increased to 9.86 percent. The food inflation rate cooled to 2.46 percent, largely due to a drop in wheat prices. In August 2023, food inflation stood at 38.51 percent. On a MoM basis, food inflation also eased to 1.46 percent.
The housing index saw a MoM decline of 1.40 percent in August 2024, primarily due to a lower Fuel Charges Adjustment of PKR 2.56 per kWh, compared to PKR 3.33 per kWh in the previous month.
The transport index decreased by 0.74 percent MoM in August, driven by reductions in petrol and diesel prices. The government reduced petrol prices by PKR 14.6 per liter and diesel prices by PKR 17.6 per liter, following a drop in international prices.
