Pakistan's short-term inflation eased by 0.39%

Pakistan's short-term inflation for the week ending January 16 decreased by 0.39%, according to the latest data released by the government.

Significant decreases were observed in the prices of tomatoes (18.31%), potatoes (10.42%), onions (10.01%), eggs (8.64%), chicken (2.17%), LPG (1.21%), pulse mash (0.81%), mustard oil (0.67%), and garlic (0.54%).

Conversely, major increases were noted in the prices of bananas (3.22%), petrol (1.39%), vegetable ghee (2.5 kg) (1.08%), cooking oil (5 liters) (1.01%), firewood (1.00%), diesel (0.99%), pulse moong (0.89%), sugar (0.72%), and rice basmati broken (0.58%).

The Sensitive Price Index (SPI) trend shows an increase of 1.16% compared with the same week last year.

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Inflation in Pakistan is showing a significant downward trend, with headline inflation projected to ease to 3.06% in January 2025, marking the lowest level in nearly nine years.

This follows a year-on-year inflation rate of 4.1% in December 2024, which was already an 80-month low. For context, inflation was a staggering 29.7% during the same period last year.

Inflation is expected to remain below 5% through April 2025, driven by the favorable base effect. However, a reversal in this downward trend is likely in May and June.