Pakistan’s annual inflation rate fell to just 0.7% in March, marking the lowest level in over 57 years, according to the Pakistan Bureau of Statistics (PBS). This significant decline is attributed to reduced prices of perishable food items and a decrease in electricity rates.

The last time inflation was this low was in September 1968. While some commodity prices increased, the overall price spiral eased compared to previous years. Prime Minister Shehbaz Sharif noted that the government had aimed to reduce inflation to single digits by 2026, achieving this goal ahead of schedule.

Despite the positive news, the International Monetary Fund (IMF) cautions that the slowdown in inflation may be temporary, with core inflation remaining around 9%. Urban inflation decreased to 1.2%, while rural prices remained stable.

The PBS also reported a deflation in food prices, with prices for perishable items dropping significantly. However, some farmers have faced challenges due to falling wheat prices, leading them to shift to less profitable crops.

Overall, the average inflation rate for the first nine months of the fiscal year stands at 5.3%, nearly half the annual target of 12%.

The stats were revealed as Prime Minister Shehbaz Sharif announced cuts of over Rs7 per unit in the price of electricity for domestic and international consumers.