AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: Pakistan’s Consumer Price Index (CPI) is expected to fall to 2.29% in February 2025, marking the lowest level since November 2015. This decline continues the disinflation trend, with average inflation for the first eight months of the fiscal year 2025 projected at 6.1%, down significantly from the previous year’s 28.0% average.
According to a statement by JS Global, the anticipated drop in the CPI is attributed to a high base effect. The firm predicts that the CPI for the fiscal year 2025 will average 5.7%. However, an increase in food inflation is expected during the holy month of Ramzan next month.
The statement also noted that the rolling 12-month forward CPI estimate is approximately 6.7%. Last month’s market survey indicated that expectations for a continued easing cycle beyond January 2025 are strong. Given the lower-than-expected inflation readings, there may be a 100 basis point reduction in interest rates in the near future.