ISLAMABAD, Jan 30 (APP): The prudent policies, administrative measures and relief measures implemented by the government helped in effectively curb inflationary pressures amid significant drop in the inflation rate and price of essential items.
Inflation during the first six months of FY2024-25 (July-December) declined to 7.2% compared to 28.8% in the same period last year, said the Ministry of Finance in a press statement issued here.
In December 2024, inflation was recorded at 4.1%, the lowest in 80 months (since April 2018, when it stood at 3.96%).
The sharp decline in inflation is attributed to exchange rate stability, prudent fiscal management, and improved supply arrangements for essential commodities. Strict action against illegal foreign exchange companies, smuggling, and hoarding has helped stabilize the exchange rate, boost market confidence, and ensure a steady supply of goods, it added.
The Sensitive Price Index (SPI), which tracks the weekly price movement of 51 essential items, has shown a continuous decline over the last four weeks of January 2025. In the week ending on 23rd January 2025, the SPI decreased by 0.77%. During this period, prices of 12 items decreased, 14 increased, and 25 remained stable, indicating overall stability or a downward trend in the prices of essential goods.
The Economic Coordination Committee (ECC) had observed an abnormal increase in the prices of pulses and chicken in early November and took corrective measures. As a result, the price of gram pulse declined by Rs 52.5 per kg (from Rs 411.3 to Rs 358.8), and mash pulse decreased by Rs 37.4 per kg (from Rs 528.3 to Rs 490.9).
Similarly, chicken prices dropped by Rs 20.1 per kg (from Rs 460.6 to Rs 440.5), and the price of a 20kg wheat flour bag fell significantly from Rs 2816.5 to Rs 1794.3, a reduction of Rs 1022.2.
Over the past four weeks, significant price reductions have been observed in tomatoes, potatoes, pulses, eggs, and LPG.