Islamabad: According to the latest review report by the global financial institution Bloomberg, Pakistan is witnessing significant improvements in price stability and economic governance, which is clearly evidenced by the decline in the inflation rate in December.
The report said that the overall inflation rate during December was 5.6 percent, which is not only lower than market expectations but also below the 6.1 percent level recorded in November. According to Bloomberg, food inflation was limited to 3.24 percent due to the reduction in food price pressures, which led to market stability and public relief.
Bloomberg pointed out that low inflation strengthened confidence in the policy direction, after which the State Bank decided to bring the interest rate to the lowest level in almost three years. The 50 basis points reduction in the interest rate was considered a clear indication that price pressures were under control.
According to economists, the continued decline in inflation is a sign that fiscal and monetary policies are starting to have an impact. Experts say that if this trend continues, the investment climate could further improve and economic stability will be strengthened.
