CPI eases to 4.1% in December

January 01, 2025 (MLN): Pakistan's inflation slowed to 4.1% in December compared to 4.9% in the last month and 29.7% YoY in December 2023, the latest data issued by the Pakistan Bureau of Statistics (PBS) showed.

Accordingly, this takes the average yearly inflation of 6MFY25 to 7.3% compared to 28.8% in 6MFY24.

On a monthly basis, CPI rose 0.1% in December 2024 as compared to the 0.5% rise of the previous month and an increase of 0.8% in December 2023.

The annual rise in the consumer price index (CPI) was slightly lower than the market expectations of 4.3%.

In December 2024, urban CPI inflation decreased to 4.4% on a year-on-year basis, compared to 5.2% in November 2024 and a significant 30.9% in December 2023. On a month-on-month basis, it recorded a marginal decline of 0.1%, following a 0.5% decrease in the previous month and a 0.7% increase in the same month last year.

Rural CPI inflation followed a similar downward trend year-on-year, falling to 3.6% in December 2024 from 4.3% in November 2024 and 27.9% in December 2023. However, on a month-on-month basis, rural inflation increased by 0.3% in December 2024, compared to a 0.5% rise in November 2024 and a 1.0% increase in December 2023.

SPI inflation dropped year-on-year to 4.2% in December 2024, down from 7.3% in November 2024 and a stark 35.3% in December 2023. On a month-on-month basis, SPI inflation rose by 0.8% in December 2024, following a 1.0% increase in the prior month and a significant 3.8% rise in December 2023.

WPI inflation also saw a decline on a year-on-year basis, registering 1.9% in December 2024, compared to 2.3% in November 2024 and a much higher 27.3% in December 2023.

Month-on-month, WPI inflation decreased by 0.4% in December 2024, after a 0.1% decline in the previous month, with no change observed in December 2023.

Core inflation, measured by non-food, non-energy items in urban areas, declined year-on-year to 8.1% in December 2024 from 8.9% in November 2024 and 18.2% in December 2023.

On a month-on-month basis, it rose slightly by 0.2% in December 2024, compared to a 1.2% increase in November 2024 and a 0.8% rise in December 2023.

In rural areas, core inflation dropped year-on-year to 10.7% in December 2024, down from 10.9% in November 2024 and 25.1% in December 2023.

Month-on-month, rural core inflation increased by 0.6% in December 2024, following a 0.7% rise in the prior month and a 0.9% increase in December 2023.

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