Inflation rate drops to 4.9% in November, lowest in 6.5 years

Last month, the inflation rate dropped to 4.9 percent, the lowest level in the previous six and a half years.

The Pakistan Bureau of Statistics reports that this year’s October inflation rate was 7.2 percent.

Given the low rate of inflation, more monetary easing is probably in the works, which would further lower the cost of capital for companies and sectors and increase government savings on debt servicing, which will enhance fiscal balance in the months to come.

Bloomberg claims that because of improving food supplies and restrained demand, inflation may drop much more over the next months.

Compared to October, when food prices increased by 0.92 percent, they decreased by 0.24 percent last month.