#CPIWatch Pakistan's Consumer Price Index (CPI) inflation has been on a downward trend, reaching a significant low of 4.1% recently, according to the Pakistan Bureau of Statistics. This marks a substantial decline from the 29.7% inflation rate recorded in December 2023 and the 49% rate observed in June last year. Here are some key highlights ¹:

- *Recent Inflation Trends:*

- *November 2024:* CPI inflation hit a 78-month low at 4.9% year-over-year, down from 7.2% in October 2024.

- *January 2025:* Inflation further dropped to 2.41%, its lowest level in 111 months.

- *Factors Contributing to Inflation:*

- *Increase:* Clothing and footwear (14.37%), health (13.06%), communication (12.23%), and education (10.55%) saw notable price hikes.

- *Decrease:* Transport costs dropped by 2.75%, and non-perishable food items recorded a 1.54% decline in prices.

- *Government Efforts:*

- Prudent economic policies have led to reduced inflation rates.

- The government aims to sustain this positive momentum through structural reforms and prudent fiscal management.

- *Future Outlook:*

- Analysts expect continued decline in inflation rates due to high base effects and stable economic conditions.

- Policymakers will closely monitor inflation trends to ensure economic stability and support growth ² ³ ¹.