Inflation slows to 2.4% in January

February 03, 2025 (MLN): Pakistan's inflation slowed to 2.4% in January 2025- marking a 9-year low, compared to 4.1% in the previous month and 28.3% in January 2024, the latest data issued by the Pakistan Bureau of Statistics (PBS) showed.

On a sequential basis, inflation stands at 0.2% MoM in January 2025, compared to 0.1% MoM in December 2024 and 1.8% in January 2024.

Accordingly, the average yearly inflation for 7MFY25 is 6.5%, compared to 28.7% in 7MFY24.

This is primarily driven by a favourable base effect from mounting inflation of the previous year and comes despite a 0.2% MoM increase in headline inflation.

The annual rise in the consumer price index (CPI) was lower than our estimated number of 2.7%.

Urban inflation eased to 2.7% on a year-on-year basis in January 2025, down from 4.4% in the previous month and 30.2% in January 2024. On a month-on-month basis, it rose to 0.2% in January 2025, compared to a decline of 0.1% in the previous month and a 1.8% increase in January 2024.

Inflation in rural areas slowed to 1.9% year-on-year in January 2025, compared to 3.6% in the previous month and 25.7% in January 2024. On a month-on-month basis, it ticked up by 0.2% in January 2025, compared to 0.3% in the previous month and a 1.9% rise in January 2024.

SPI inflation on a YoY basis dropped to 0.7% in January 2025, compared to 4.2% a month earlier and 36.2% in January 2024. On an MoM basis, it contracted to 1.4% in January 2025, compared to 0.8% in the previous month and a 2.0% uptick in January 2024.

WPI inflation on a YoY basis moderated to 0.6% in January 2025, compared to 1.9% a month earlier and 27.0% in January 2024. On a MoM basis, it rose by 0.2% in January 2025, compared to a drop of 0.4% in the previous month and a 1.5% change in January 2024.

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