Govt claims significant decline in inflation during Dec 2024

The government claimed a significant decline in inflation during December, with the annual inflation rate dropping to 4.1 per cent, according to the Pakistan Bureau of Statistics (PBS).

According to details surfaced on Wednesday, the urban inflation stood at 4.4 per cent, while rural areas recorded a rate of 3.6 per cent, the report revealed. The inflation rate in November was 4.9 per cent, and it was recorded at 29.7 per cent in December 2023.

The government had earlier estimated inflation to remain between 4 per cent and 5 per cent in December 2024, the PBS stated.

The report highlighted that the average inflation rate from July to December was recorded at 7.22 per cent. Food inflation dropped by 1.40 per cent in December, reflecting lower prices of key commodities.

Prices of chicken decreased by 13.06 per cent, pulses by 7 per cent, and onions by 4.91 per cent. Tomatoes became 3.28 per cent cheaper, spices dropped by 2.60 per cent, and gram flour fell by 2.55 per cent, according to official documents. Vegetables, wheat flour, and chickpeas also witnessed slight reductions in prices.

However, potatoes rose by 12.42 per cent, fresh fruits increased by 8.84 per cent, and ghee prices went up by 5.4 per cent.

Cooking oil prices climbed by 4.39 per cent, honey by 3 per cent, sugar by 2 per cent, fish by 1.82 per cent, and eggs by 1 per cent, the report stated. Meat, lentils, dry fruits, wheat, and beverages were also among the items that saw price hikes.

The government reported a 5.68 per cent decrease in electricity charges during December 2024. Prices of construction materials also saw slight reductions, the statistics bureau added.

Meanwhile, solid fuel prices rose by 4.98 per cent, and vehicle fuel prices increased by 1.25 per cent. Textile items became 4.61 per cent more expensive, while ready-made garments increased by 4 per cent. Transport services recorded a price hike of 1.48 per cent, the bureau reported.

On an annual basis, food prices dropped by 1.40 per cent, with wheat falling by 33.82 per cent and wheat flour by 33.77 per cent. Onion prices decreased by 13.32 per cent, and tomatoes fell by 45 per cent, the report revealed.

Transport fares witnessed a 2.52 per cent decline year-on-year, while lentils, rice, sugar, tea, eggs, and chicken were also among the items that became cheaper.

However, the motor vehicle taxes rose by 169 per cent, footwear prices increased by 32 per cent, and ready-made garments became 19.16 per cent more expensive. Clothing prices also saw an increase of 1.39 per cent, the federal statistics bureau reported.

Healthcare costs rose by 13.28 per cent, and education expenses increased by 10.32 per cent.

The recreational services became 8 per cent more expensive, while charges for housing, water, electricity, and gas increased by 5.15 per cent, the report added.