ISLAMABAD: Pakistan’s annual inflation rate dropped to 1.5% in February, marking its lowest level in nearly a decade and falling below the finance ministry’s projections, data from the Pakistan Bureau of Statistics (PBS) showed on Monday.
Inflation has eased significantly from 23.1% in February 2024, reflecting a sharp decline. Consumer prices also fell 0.8% month-on-month in February.
The economic recovery is being supported by a $7 billion International Monetary Fund (IMF) program secured in September. Authorities credit the IMF-backed economic stabilization measures for the declining inflation trend.
In its monthly economic outlook, the finance ministry had projected February’s inflation at 2.0-3.0%, expecting it to rise slightly to 3.0-4.0% by March 2025.
As per economists a favorable base effect from last year’s high inflation contributed to this drop.
