Pakistan is witnessing a significant decline in inflation, with experts predicting that the rate of increase in prices during April may drop to below 0.5% — the lowest pace recorded in the country’s history over the past six decades.
This cooling of inflation marks a stark contrast to the previous year, when essential commodities like onions were being sold at Rs150 per kilogram. Today, the price has dropped to Rs50. Similarly, prices of flour, cooking oil, and eggs have also seen a noticeable decline.
Economic analysts estimate that inflation during the first 10 months of the current fiscal year will average around 4.87%, compared to a staggering 26% during the same period last year.
To control inflation, the government had previously raised interest rates to curb demand. However, with inflation now easing, the business community is calling for a reduction in interest rates to support economic activity.
The next meeting of the State Bank of Pakistan’s Monetary Policy Committee is scheduled for May 5, where the future direction of interest rates is expected to be a key focus.
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