The latest figures from the Ministry of Finance reveal a significant drop in the inflation rate, marking a positive shift in the economy. In December 2024, inflation fell to 4.1%, the lowest level in 80 months. This is a major improvement compared to the previous year’s inflation rate of 28.8% during the same period.
Economic Stability Leading to Lower Inflation:
The drop in inflation has been attributed to several key factors, including a stable exchange rate, strict fiscal discipline, and better supply chain management. The government’s strong actions against illegal foreign exchange trading, smuggling, and hoarding have also contributed to this positive trend.
Reports indicate that the Sensitive Price Indicator (SPI), which tracks the prices of essential goods, has shown a steady decline in the past month. By January 23, 2025, the SPI had fallen by 0.77%, reflecting the easing of inflationary pressures.
Prices of Essential Goods See a Decline:
The Ministry of Finance report highlights a decline in the prices of several essential goods. Out of 51 monitored items, 12 recorded price decreases, 14 saw price hikes, while 25 remained stable.
To address concerns over the rising costs of food items, the Economic Coordination Committee (ECC) had taken action in November. As a result, the price of chickpeas dropped by Rs 52.5 per kg, while moong dal became cheaper by Rs 37.4 per kg. The price of chicken saw a decrease of Rs 20.1 per kg, and a 20 kg bag of flour became Rs 1022.2 cheaper.
Additionally, the last four weeks have witnessed a sharp decline in the prices of tomatoes, potatoes, pulses, eggs, and LPG, offering further relief to consumers.
Government Policies Driving Positive Change:
The Federal Bureau of Statistics has confirmed that the government’s economic policies, administrative measures, and relief programs have played a crucial role in curbing inflation. The efforts to regulate market prices and ensure a stable economy have resulted in more affordable living conditions for citizens.
With inflation at an 80-month low, the economic outlook for 2025 appears promising. The government’s ongoing measures to maintain price stability and promote financial discipline are expected to further strengthen economic growth and bring continued relief to the people.
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