Pakistan's inflation rate drops to decade-low of 1.8%

Pakistan's inflation rate fell to 1.8% year-on-year for the week ending January 9, down from 3.97% the previous week. This is the lowest rate since October 2014, a significant drop from 48.35% in May 2023. The Sensitive Price Indicator showed a 0.65% decrease in essential goods prices. Notable price drops included tomatoes, which fell by 31.4%, and potatoes, down 10.4%. However, some items like cooking oil and sugar saw slight increases. Inflation impacts different income groups unevenly. Households earning less than Rs17,732 monthly faced a 1.44% price increase, while those earning over Rs44,175 saw a 2.22% rise. Despite the overall decline, many essential items have experienced significant price hikes over the past year.