Inflation hits 60-year low in Pakistan, experts call for interest rate cut

Pakistan, May 3 — Inflation in Pakistan dropped to 0.28% in April, the lowest in 60 years. In March, it was 0.7%. The Pakistan Bureau of Statistics reported that this was the sixth month in a row with falling inflation. A year ago, inflation was over 17%, showing a sharp improvement.

Food and transport costs helped push inflation down. Prices of perishable items dropped by 26.7% in April. Electricity rates also fell by Rs 7.41 per unit. Housing, utilities, and transport expenses declined too, making daily life slightly easier for people.

Despite this, some costs went up. Healthcare rose to 14.15%, and entertainment increased as well. But core inflation, which excludes food and energy, dropped to 7.4%. Meanwhile, wholesale prices also fell by 2.2%, continuing a steady downward trend.

Experts say high interest rates are now hurting growth. They urged the State Bank to lower the policy rate. Pakistan’s real interest rate is among the world’s highest. Economists believe a cut is needed to support the economy and reduce debt pressure.