Amid ongoing efforts by the current administration to improve economic indicators, the inflation in the country is expected to continue its downward trajectory, potentially dipping below 3% in January.
A report issued by JS Global forecasts that Consumer Price Index (CPI) inflation for January 2025 could fall to 2.8%, marking the lowest level since November 2015, driven by a high base effect despite a modest 0.6% month-on-month increase.
This would bring the average inflation for the first seven months of the fiscal year to 6.7%, a significant drop from the 28.7% recorded in the same period of the previous fiscal year.
Ismail Iqbal Securities Limited echoed this view, projecting January inflation at 2.9%, a sharp decline from 28.3% in the same month last year, reflecting a significant easing of price pressures.
In December 2024, headline inflation clocked in at 4.1% year-on-year, down from 4.9% in November, according to the Pakistan Bureau of Statistics (PBS). The consistent decline in inflation readings is expected to embolden the central bank to further cut its key policy rate.
