Pakistan’s consumer price index (CPI) in September clocked in at 6.9 per cent year-on-year (YoY), data from the Pakistan Bureau of Statistics (PBS) showed on Tuesday, which is well within the central bank’s target of 5 to 7pc for next year.

The State Bank of Pakistan (SBP) had held off on aggressive monetary easing in order to achieve the goal of bringing inflation down to the medium-term target of 5 to 7pc in September 2025 and ensure macroeconomic stability.

On a month-on-month (MoM) basis, the PBS noted that it had decreased by 0.5pc in September as compared to an increase of 0.4pc in the previous month.

The CPI measures household inflation and includes statistics about price change for categories of household expenditure.

Mohammed Sohail, chief executive of Topline Securities, attributed the ease in inflation to “aggressive monetary tightening”.

He said, “SBP has achieved bringing inflation below 7pc one year ahead of target.”

In August, inflation had risen 9.6pc year-on-year (YoY), marking a 34-month low.

Prime Minister Shehbaz Sharif had expressed satisfaction over the single-digit inflation rate, attributing the achievement to the hard work of the government’s economic team.

Meanwhile, the finance minister had noted that inflation was down to single digits and was going to “subside more”, adding that happened on the back of the successful completion of the stand-by agreement with the International Monetary Fund (IMF).

Year-on-year

Urban:

Food item prices that increased included: Onions (78pc), Pulse Gram (56.98pc), Besan (47.53pc), Fish (29.85pc), Fresh Vegetables (29.17pc), Milk Powder (21.09pc) and Chicken (21.08pc).

Non-food items prices that increased: Gas Charges (318.74pc), Motor Vehicle Tax (168.79pc), Dental Services (29.47pc), and Cotton Cloth (19.63pc).

Rural

Food item prices that increased included: Onions (89.74pc), Pulse Gram (48.05pc), Besan (39.23pc), Milk Powder (26.07pc), Beans (24.29pc), and Meat (23.27pc).

Non-food items that increased: Motor Vehicle Tax (126.61pc), Education (22.73pc), Personal Effects (22.05pc), Cotton Cloth (19.19pc), and Communication Services (18.70pc).

Month-on-month

Urban:

Food item prices that increased included: : Besan (14.67pc), Pulse Gram (13.48pc), Eggs (7.33pc), Gram Whole (4.98pc), Onions (4.94pc) and Condiments and Spices (3.32pc)

Non-food items prices that increased: Electrical Appliances for Personal (3.02pc), Dental Services (3.01pc), Postal Services (2.48pc), and Newspapers (2.39pc).

Rural

Food item prices that increased included: Besan (14.40pc), Onions (12.75pc), Pulse Gram (10.12pc), Eggs (8.54pc), Gram Whole (4.54pc), and Meat (3.74pc).

Non-food items that increased: Water Supply (5.19pc), Personal Effects (2.68pc), Dental Services (2.38pc) and Construction Input Items (1.88pc).