Inflation in Pakistan

ISLAMABAD (Reuters) – Pakistan's annual consumer price inflation slowed to 6.9% in September, the lowest in over three years, as the government seeks to implement IMF conditions that many households fear will hit them hard financially.

Annual inflation had previously decreased to 9.6%, marking the first single-digit reading in over three years.

Tuesday's data from the Pakistan Bureau of Statistics also showed that the monthly consumer price index in September stood at -0.5%.

"Due to aggressive monetary tightening, SBP (State Bank of Pakistan) has achieved bringing inflation below 7% one year ahead of target," said Mohammad Sohail, CEO at brokerage Topline Securities.

Pakistan's central bank has cut interest rates three times this year, asserting confidence that inflation is under control after previously raising rates to an all-time high of 22%.

In an economic outlook published last week, the finance ministry projected annual inflation to fall to 8-9% in September and October.

The International Monetary Fund approved a $7 billion loan program for Pakistan last month, implementing tough measures like higher taxes on farm incomes and electricity prices.

Concerns among poor and middle-class Pakistanis have heightened regarding increased prices following years of soaring inflation, despite recent downward trends.