Economists and business leaders hailed on Wednesday that Inflation in Pakistan has reached a single digit after three years, on which the business community and household consumers expressed its pleasure. At present, the inflation rate in the country is 9.6% and in rural areas, the inflation is up to 6.3 %, which is also an indicator of the decrease in the prices of essential commodities.
Meanwhile Speaking to APP, renowned economist, and Executive Director of Sustainable Development Policy Institute (SDPI) Sajid Amin said that the inflation rate touched to its climax of 40% and now it is natural to come down.
He said that this global trend of inflation is coming down, which is affecting every country in region and the global market.
Along with this, there has been a significant reduction in the inflation rate in rural areas and this will have a positive impact on the country’s economy, he said. President , Federation Pakistan Chamber of Commerce and Industry (FPCCI) , Atif Ikram Sheikh lauded Pakistan’s annual consumer price inflation rate slowed to 9.6% in August, the first single-digit reading in almost three years.
The Consumer Price Index (CPI) decelerated further to 9.6% year-on-year in August, down from the previous month’s 11.1%
He said the economy had been battling with inflation topping 20% since May 2022, peaking at a staggering 38% last May and these skyrocketing inflation rates coincided with the reforms implemented as part of a much-needed International Monetary Fund (IMF) bailout programme.
He also expressed satisfaction over the “nose-diving of inflation rate” in the country and up-gradation of credit rankings by international financial institutions, including Fitch and Moody’s.
Atif said that that Pakistan’s exports have the potential to reach $ 60 billion, but due to the high cost of electricity in Pakistan, the industry is affected. He also said FPCCI showed its confidence in the role of special investment facilitation council for the revival of the country’s economy.
The President FPCCI stressed implementing measures to stabilize energy prices at 9 cents and ensure a fair pricing mechanism that does not overburden industrial consumers.
According to PBS, inflation rate in Pakistan eased to 9.6% in August 2024, down from 11.1% in the previous month, marking the lowest reading since October 2021. Prices eased for housing and utilities (22.2% vs 25.3% in July 2024), transportation (3.2% vs 12.2%), clothing and footwear (17.3% vs 18.2%) and restaurants and hotels (10% vs 11.2%).