Pakistan Inflation Drops to 9.2 Percent in July

The Pakistan Bureau of Statistics reported that the national consumer price index rose 9.2% in July from a year earlier, a decrease from the 11.07% rate recorded in June. This return to single-digit inflation was primarily driven by lower fuel prices, which helped offset a rise in food inflation that accelerated to 10.64% from 9.4% in June.

The State Bank of Pakistan maintains a cautious outlook despite the cooling trend. The central bank cited volatility in global energy prices and disruptions in the Strait of Hormuz as key risks, noting that these factors forced the country to purchase its most expensive spot cargo since 2022.

To manage these economic pressures, the central bank recently kept its benchmark interest rate unchanged at 11.5%. The State Bank of Pakistan aims to stabilize inflation within its target range of 5% to 7% by June 2027.