Pakistan’s Inflation Rate Climbs to 7.2% in October 2024

Pakistan’s headline inflation rose to 7.2% year-on-year in October 2024, according to data released by the Pakistan Bureau of Statistics (PBS).

This marks a slight increase from the 6.9% recorded in September. The Consumer Price Index (CPI) also experienced a month-over-month rise of 1.2%, contrasting with a decrease of 0.5% in the previous month and a year-on-year increase of 1% in October 2023.

In the first four months of fiscal year 2025, the average CPI stands at 8.68%, a dramatic decrease from the staggering 28.45% during the same period last year. However, the October inflation figure slightly exceeded official forecasts, which predicted inflation would remain between 6-7% and decline to 5.5-6.5% by November.

The finance ministry’s monthly economic update highlights that inflation remains a persistent challenge for Pakistan, despite a significant reduction from the record high of 38% experienced in May 2023. The report underscores the ongoing economic pressures faced by consumers and businesses alike.

Analyzing inflation trends by region reveals differing experiences between urban and rural populations. Urban inflation held steady at 9.3% year-on-year, while rural inflation increased by 4.2%. On a month-to-month basis, urban inflation saw a rise of 1.1%, while rural inflation recorded a higher increase of 1.5% in October 2024.

Experts suggest that the inflationary pressures are influenced by various factors, including rising food prices, fluctuating energy costs, and ongoing supply chain challenges.