Pakistan inflation eases to 6-year low of 4.9% in November

Inflation in Pakistan was measured at 4.9% in November compared to the same month in the preceding year — touching a six-year low when it was recorded at 3.95%.

In November 2023, inflation was measured at 29.2%. Meanwhile, last month, inflation clocked in at 7.2%.

The easing of inflation can be attributed primarily to a drop in food prices and a high base effect.

According to data from Pakistan Bureau of Statistics, on a month-on-month basis, it increased by 0.5% compared to an increase of 1.2% in the previous month and an increase of 2.7% in November 2023.

Inflation during the first five months of the current fiscal year was up by 7.88% compared to 28.62% during the same period last year.

According to an analyst, with the benchmark interest rate at 15%, the real interest rate has now touched 10.1%, giving Pakistan's central bank much room to cut the interest rate further.

The country's central bank has already cut interest rates in three consecutive meetings.

The interest rate is likely to be trimmed by 200 basis points by the bank at the next meeting of its Monetary Policy Committee on December 16, according to Muhamad Tahir at Sherman Securities.

The Ministry of Finance projected earlier that inflation in December is expected to range between 5.6% to 6.5%.