Pakistan Inflation Drops to 9.6% in August

Pakistan's annual inflation rate fell to 9.6% in August 2024, marking the first single-digit reading in nearly three years. This decrease from 11.1% in July and 27.4% a year ago allows the central bank to consider further interest rate cuts, having already reduced rates by 250 basis points recently. The inflation figures align with government projections and indicate a stable currency, which has improved against the dollar. While food and transport costs rose slightly, overall price gains are slowing, providing relief to the government amid ongoing economic reforms tied to a $7 billion IMF loan program. The State Bank of Pakistan will review monetary policy again on September 12, with expectations of continuing the easing cycle. However, risks remain due to potential spikes in oil prices and delayed reforms.