Today’s CPI watch shows inflation easing a bit. Pakistan’s headline CPI slowed to *4.1 % YoY* in December, down from 4.9 % in November, while the Sensitive Price Index (SPI) rose *3.75 % YoY* for the week ending Dec 18 . Food prices are the main driver—items like potatoes (+12.4 %) and fresh fruit (+8.8 %) pushed the index up, though chicken fell 13 % and onions dropped 4.9 %. Core inflation (excluding food & energy) also edged lower to *6.6 % YoY* in November.
In short, the trend is modestly downward but still above the 4 % target, giving the State Bank some room to consider further rate cuts if the numbers keep cooperating.