Karachi, December 2, 2024 – Pakistan’s headline inflation, measured through the Consumer Price Index (CPI), eased significantly to 4.9% year-on-year in November 2024, reflecting improved economic stability.
This figure, reported by the Pakistan Bureau of Statistics (PBS), marks a sharp decline compared to 7.2% in October 2024 and a staggering 29.2% recorded in November 2023.
On a month-on-month basis, however, CPI inflation increased marginally by 0.5% in November, a slower rise compared to 1.2% in the previous month and 2.7% in November 2023.
Urban and Rural Breakdown
Urban CPI inflation dropped to 5.2% year-on-year in November 2024, down from 9.3% in October and 30.4% in November 2023. On a monthly basis, it rose slightly by 0.5% compared to 1.1% in October.
In rural areas, CPI inflation rose marginally to 4.3% year-on-year in November 2024, compared to 4.2% in October but far lower than the 27.5% seen in November 2023. Month-on-month rural inflation increased by 0.5%, a notable slowdown from the 1.5% rise in October.
Sensitive Price Indicator (SPI) and Wholesale Price Index (WPI)
The Sensitive Price Indicator (SPI), which tracks essential commodities, declined to 7.3% year-on-year in November, down from 9.7% in October and 30.6% in November 2023. However, it saw a 1% month-on-month increase, slightly higher than the 0.6% rise in October.
The Wholesale Price Index (WPI) also registered a notable decrease, dropping to 2.3% year-on-year in November 2024 from 3.9% in October and 26.4% in November 2023. On a month-on-month basis, the WPI contracted by 0.1%, following no change in October.
Core Inflation Insights
Core inflation, excluding volatile food and energy prices, presented a mixed trend. In urban areas, core inflation rose to 8.9% year-on-year in November from 8.6% in October but was still lower than the 18.6% recorded in November 2023. Month-on-month, urban core inflation climbed by 1.2%, doubling the 0.6% rise in October.
In rural areas, core inflation decreased to 10.9% year-on-year from 11.7% in October, with no month-on-month change recorded in November.
Trimmed Core Inflation
The 20% trimmed mean inflation, which removes extreme price changes, increased to 7.5% year-on-year for urban areas and 7.8% for rural areas in November. Both metrics indicated a steady month-on-month rise of 0.5%-0.6%.
These inflation trends reflect stabilizing price levels across the country, signaling cautious optimism for Pakistan’s economic outlook.
