Inflation in Pakistan 2024: The Great Disinflation, from 29% to Single Digits
2024 was the year Pakistan’s inflation finally broke. After the record 38% peak of May 2023, CPI fell through the year — from the high twenties to single digits — one of the fastest disinflations in the country’s history. This is how it happened, and what it cost.
Quick answer: Pakistan’s inflation collapsed through 2024: CPI averaged around 23% in FY2023-24 but fell to single digits by late 2024. Drivers: base effects from the 2023 peak, a stabilised rupee, tight SBP policy (rates peaked at 22% in 2023), and softer global commodity prices.
In this guide
The year’s path
Pakistan entered 2024 with CPI still near 30% year-on-year — the aftershock of the 2023 peak. Through the first half, the rate ground down through the twenties; by mid-year it was in the low teens; by late 2024 it printed single digits — levels not seen since 2021. FY2023-24 as a whole still averaged around 23%, but the direction was unmistakable: down, fast.
Why it fell so fast
- Base effects: comparing against the 38% months of 2023 flattered every reading.
- A stable rupee: after the 2023 slide, the exchange rate steadied, cutting imported inflation.
- SBP’s tight stance: the policy rate peaked at 22% in June 2023 and stayed restrictive, crushing demand-side pressure.
- Global commodities: world food and energy prices eased from 2022 highs.
- IMF programme: the standby arrangement restored confidence and unlocked flows.
What it cost
Disinflation wasn’t free: 22% interest rates squeezed businesses and the government’s own debt servicing, growth stayed anaemic, and real wages — after two years of 25%+ inflation — remained far below 2021 levels. Households felt relief at the till, but the damage to purchasing power was already done. The SBP began cutting rates as inflation fell — see our policy rate guide.
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2024: FAQs
What was Pakistan’s inflation rate in 2024?
It fell from near 30% at the start of the year to single digits by late 2024; FY2023-24 averaged around 23%.
Why did inflation fall so fast in 2024?
Base effects, a stable rupee, SBP’s 22% policy rate, softer global commodities and the IMF programme.
When did Pakistan’s inflation return to single digits?
Late 2024 — the first single-digit readings since 2021.
Did falling inflation help households?
Price rises slowed, but two years of 25%+ inflation had already crushed real wages — relief at the till, not recovery.
