Pakistan’s consumer price index (CPI) inflation rate clocked in at 4.1 per cent in December 2024, data from the Pakistan Bureau of Statistics (PBS) showed on Wednesday.

According to PBS, CPI inflation decreased to 4.1pc “on year-on-year basis in December 2024 as compared to 4.9pc in the previous month and 29.7pc in December 2023”.

On a month-on-month (MoM) basis, it highlighted that it increased by 0.1pc in December 2024 as compared to 0.5pc the previous month.

Topline Securities, a brokerage firm in Karachi, noted that this was the lowest reading in 6.75 years (81 months).

“Inflation during 1HFY25 has averaged at 7.22pc compared to 28.79pc in 1HFY24,” it said in a note.

The reading has reinforced months of easing inflation — which hit a historic high of 38pc last year — amid the State Bank of Pakistan (SBP)’s decision to cut the interest rate 200 basis points to 13pc on December 16, noting that core inflation was “proving to be sticky, whereas inflation expectations of consumers and businesses remain volatile”.

Year-on-year

Urban:

Food item prices that increased included: Pulse Gram (54.25pc), Besan (52.15pc), Tomatoes (44.71pc), Potatoes (37.03pc), Pulse Moong (34.50pc), Fish (25.47pc), Gram Whole (24.16pc), Honey (22.75pc), Meat (21.38pc) and Milk Powder (20.64pc).

Non-food items prices that increased: Motor Vehicle Tax (168.79pc), Footwear (31.86pc), Woolen Readymade Garments (19.16pc), Drugs and Medicines (16.35pc) and Communication Services (15.68pc).

Rural:

Food item prices that increased: Pulse Gram (61.36pc), Besan (50.66pc), Pulse Moong (36.14pc), Potatoes (32.05pc), Milk Powder (26.61pc), Butter (24.91pc), Tomatoes (24.35pc), Honey (22.70pc), Fish (22.13pc), Meat (21.49pc), Gram Whole (21.19pc) and Beans (15.53pc).

Non-food items that increased: Motor Vehicle Tax (126.61pc), Education (22.96pc), Communication Services (18.70pc), Cotton Cloth (17.91pc), Drugs & Medicines (17.58pc) and Woolen Readymade Garments (16.95pc).

Month-on-month

Urban:

Food items that increased: Potatoes (12.42pc), Fresh Fruits (8.84pc), Vegetable Ghee (5.42pc), Cooking Oil (4.39pc), Mustard Oil (2.96pc), Honey (2.69pc), Sugar (2.00pc) and Fish (1.82pc).

Non-food items prices that increased: Solid Fuel (4.98pc), Household Textiles (4.61pc), Woolen Readymade Garments (4.07pc), and Liquified Hydrocarbons (3.76pc).

Rural:

Food items that increased: Honey (7.97pc), Potatoes (5.68pc), Vegetable Ghee (4.73pc), Eggs (4.57pc), Cooking Oil (4.38pc), Fish (3.62pc) and Mustard Oil (3.44pc).

Non-food items that increased: Solid Fuel (3.23pc), Household Textiles (2.53pc), Furniture and Furnishing (2.41pc), Footwear (2.18pc), Drugs & Medicines (2.16pc) and Motor Fuels (1.35pc).