Pakistan has experienced a steady decline in its inflation rate for the fifth consecutive month, thanks largely to improved domestic food supplies and reduced fuel prices. This positive trend persists despite the central bank maintaining historically high-interest rates for nearly a year.
According to a Bloomberg survey, consumer prices in May rose by 11.76% compared to the same month last year. This marks the lowest inflation rate Pakistan has seen in almost two and a half years and surpasses the median estimate of 13.7%. To illustrate the progress, the inflation rate was 17.34% in April, making the May figure a notable improvement.
The continuous drop in inflation over the past five months indicates that efforts to stabilize food and fuel supplies are yielding positive results. For consumers, lower inflation translates to a slower increase in the cost of living, providing much-needed relief. This comes at a time when high-interest rates, while aimed at controlling inflation, also make borrowing more expensive.