Consumer Inflation Declines to 10.3% in September Amid Food Price Slowdown

ISLAMABAD: Consumer inflation in Pakistan eased to 10.3 percent in September, down from 11.1 percent in August, primarily driven by a significant slowdown in food prices, according to data released by the Pakistan Bureau of Statistics on Thursday.

The decline in the inflation rate, measured by the Consumer Price Index (CPI), marks a reversal from the sharp increase observed in August, when the annual rate surged from 9.2 percent in July due to rising food and energy costs. The easing was particularly notable in rural areas, where inflation fell to 10.5 percent from 12.2 percent, while urban inflation decreased slightly to 10.1 percent from 10.4 percent.

This September figure aligns with the Ministry of Finance’s projections of 10 to 11 percent for the month, as outlined in its Monthly Economic Update and Outlook. Despite the annual decline, prices rose by 1.3 percent month-on-month in September, compared to an annual inflation rate of 5.8 percent in the same month last year.

The easing of inflation was largely attributed to a drop in food prices, with urban food inflation decreasing to 8.1 percent in September from 12.1 percent in August. Rural areas experienced an even sharper decline, with food inflation falling to 7.7 percent from 13.2 percent. As the government continues to monitor these trends, further developments regarding economic policies and potential interventions are anticipated.