Weekly inflation hits decade-low

Islamabad: The weekly inflation has hit a decade-low and is expected to fall by three percent in January.

According to details, inflationary pressures in Pakistan appear to be easing rapidly as the Consumer Price Index (CPI) recorded a year-on-year increase of just 0.52 percent for the week ending January 23.

This represents a significant decline from the previous week’s 1.16 percent and is the fourth consecutive week in which inflation has declined, down from the 5.08 percent recorded at the end of December 2024.

A decline in the Sensitive Price Index (SPI), a measure of short-term inflation on basic commodities, has forced economists to predict a significant decline in the January CPI.

The CPI, which was 4.1 percent in December, could fall below three percent for January 2025 and possibly reach 2.5 percent.

This trend could force the State Bank of Pakistan (SBP) to cut its policy rate, which is currently 13 percent.

Analysts expect a possible cut of 1.5 percentage points in the policy rate at the central bank’s Monetary Policy Committee meeting on January 27.