• Consumer Price Index eases 0.8pc month-on-month; falls to 1.5pc year-on-year
• Falling food prices contribute to slowdown; decline exceeds even ministry’s expectations
• PM credits economic team, says macroeconomic gains reaching people

ISLAMABAD: Annual inflation continued its downward trend, falling to a nearly decade-low of 1.5 per cent year-on-year in February, primarily driven by a decline in perishable food prices, especially wheat flour.

The decline even exceeded the Ministry of Finance’s expectations, which had projected inflation to remain between 2pc and 3pc. In its February report, the ministry also predicted that the figure would rise to between 3pc and 4pc by March.

The slowdown in inflation is primarily driven by lower prices of wheat and its by-products, perishable items like onions, certain pulses, and a slight reduction in electricity charges. These products hold significant weight in inflation calculations, making even minor price changes impactful in reducing the overall inflation rate.

In contrast, sugar and edible oil pri­ces are rising in the domestic market despite their declining rates globally. The government has permitted sugar exports, particularly to Afghan­is­tan, citing surplus stock as the reason.

The headline inflation, measured by Consumer Price Index (CPI), eased by 0.8pc in February on a month-on-month basis, according to data released by the Pakistan........

© Dawn Business