KARACHI, February 04, 2025: Inflation has plunged to 2.4%, marking its lowest level since October 2015—a significant drop from the staggering 28.3% recorded last year. This sharp decline is primarily driven by the high base effect and a slower pace of monthly increases, which averaged just 0.3% over the past year compared to 2.2% in the preceding 12 months.
A major factor behind the decrease is falling food prices, which had previously been one of the main contributors to soaring inflation. Additionally, energy costs have seen a notable reduction, with electricity prices dropping by 15.6% and fuel by 2.5%.
However, despite this downward trend, not all sectors are experiencing relief. Inflation in areas such as clothing, footwear, health, education, and miscellaneous goods remains in double digits, indicating that the cost of living pressures persist for many households. While inflation may be cooling, the impact of previously high prices still lingers, offering little immediate respite to consumers.