From Our Correspondent Karachi: Countr’y headline inflation clocked in at 6.9 percent on year-on-year basis in September 2024, lower than reading in August 2024 when it stood at 9.6 percent, showed Pakistan Bureau of Statistics (PBS) data on Tuesday.

CPI reading is lowest since January 2021, according to PBS. “Due to aggressive monetary tightening, State Bank of Pakistan has achieved bringing inflation below one-year target of 7 percent ahead of time,” said Mohammed Sohail, CEO Topline Securities, in note. On month-on-month basis, CPI decreased by 0.5 percent in September 2024 as compared to an increase of 0.4 percent in the previous month and an increase of 2.0 percent in September 2023.

Experts attributed slowing inflation trend to several key factors, including high base effect, declining global commodity and energy prices and stable exchange rate. “Inflation is expected to remain within range of 8 percent to 9 percent in September and October 2024,” Ministry of Finance said in its ‘Monthly Economic Update and Outlook’. Slowing inflation figure also gives impetus to further cut in key policy rate. Meanwhile, latest reading was also lower than projections made by number of brokerage houses. PBS said CPI inflation urban clocked in at 9.3 percent on year-on-year basis in September 2024 as compared to 11.7 percent in previous month and 29.7 percent in September 2023. CPI inflation rural decreased to 3.6 percent on year-on-year basis in September 2024 as compared to 6.7 percent in previous month and 33.9 percent in September 2023.

On month-on-month basis, it decreased by 0.5 percent in September 2024 as compared to an increase of 0.6 percent in previous month and an increase of 2.5 percent in September 2023