ISLAMABAD, November 2, 2024: Pakistan’s headline inflation reached 7.2% year-on-year in October 2024, according to data released by Pakistan Bureau of Statistics (PBS).
This marks a slight increase from September’s inflation rate of 6.9%. On a month-on-month basis, the Consumer Price Index (CPI) saw a rise of 1.2% in October, compared to a decrease of 0.5% in September and an increase of 1% in October 2023.
The average CPI inflation for the first four months of FY25 stands at 8.68%, a dramatic decline from 28.45% during the same period last year.
The finance ministry’s recent monthly outlook had anticipated inflation to remain within the 6-7% range for October, with expectations for a further decrease to 5.5-6.5% by November. Despite the current inflation figure being slightly above these forecasts, the trend reflects a general decline since the record high of 38% in May 2023.
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The easing inflationary pressures may lead to additional cuts in the key policy rate. The State Bank of Pakistan’s Monetary Policy Committee (MPC) is set to meet on November 4, following a significant 200 basis points cut to 17.5% during its last meeting in September.
Brokerage firm Topline Securities had predicted October’s inflation to be between 6.5% and 7.0%, highlighting a small gap between expected and actual results.