Islamabad: Inflation in Pakistan has dropped from 38% to 11.8% in one year. According to the Bureau of Statistics, CPI inflation was recorded at 11.76% in May, compared to 17.34% in April.
The Bureau of Statistics report shows that electricity prices increased by 58.7%, transportation services by 32.2%, cotton clothes by 23.2%, onions by 86.6%, tomatoes by 55.4%, and spices by 39.17%.
On the other hand, in May 2024, monthly inflation decreased by 3.24%, and inflation in May reached 11.76%. Inflation in the city decreased by 2.80%, in rural areas by 3.89%, and in July-May inflation decreased by 24.52%.
According to the Bureau of Statistics, the price of tomatoes and onions fell by 51%, chicken by 35.2%, and wheat by 22.7% in May. In addition, the price of liquid fuel decreased by 9.4%, electricity by 4.5%, and motor fuel by 3.18%. However, in May, the price of potatoes increased by 14.73%, meat by 4%, and beans by 3.9%.
Topline Securities said the strict monetary and fiscal policy contributed to lower inflation, as well as agricultural production and a stable currency. They believe that the State Bank will cut interest rates soon.
Commenting on inflation indicators, Arif Habib Securities said that inflation in May was 11.8 percent, 3.2 percent lower than April. According to Arif Habib Securities, the drop in inflation in May was the lowest since May 1977, with monthly inflation falling to 4.58%. This is the second highest in the history of Pakistan.
