ISLAMABAD: Pakistan’s annual headline inflation rate dropped to 4.9% in December 2024, a decline from 7.2% recorded in the previous month, even as the monthly consumer price index registered a modest increase.

According to a statement by United Nations World Food Programme, the Consumer Price Index (CPI) rose by 0.5% in November compared to October, indicating a nuanced shift in the inflationary landscape.

The report highlights a decrease in annual food inflation by 0.24% from November 2023, reflecting changing dynamics in food pricing. While staple cereals like wheat and wheat flour saw a slight month-on-month price increase ranging from 2% to 4%, they experienced a significant year-on-year decrease. This trend extended to rice varieties such as Irri-6 and Basmati, which observed minor price drops over the past year.

Non-cereal food prices presented a varied picture. Eggs recorded a significant price surge compared to October, with slight increases in the prices of pulse moong, ghee, and cooking oil. Over the past year, the most noticeable price rises were seen in pulses, specifically gram and moong, and to a lesser extent, chicken and eggs. Conversely, there was a slight decline in the prices of sugar, cooking oil, and pulses like masoor and mash.

The report also noted an improvement in the Terms of Trade (ToT) by 0.5% from the previous month and a substantial 63% improvement over the past year, indicating a more favorable economic exchange ratio for the country.