Pakistan's consumer price index in September rose 10.12 percent from a year earlier, the slowest pace in 21 months due to a high base effect, the Federal Bureau of Statistics said on Monday.
Inflation slowed from 10.69 percent year-on-year in August, though prices rose 0.45 percent on a month-on-month basis.
Analysts attributed the monthly rise to a seasonal trend as the Muslim holy month of Ramadan ran from late August to late September this year. Food prices, especially for sugar and wheat, typically shoot up during the period as Muslims break their daily fasts with large meals shared with families and friends.
"The reason for the rise is purely seasonal," said Zainab Jabbar, group investment strategist at IGI Financial Services, adding that the inflation rate was likely to bottom out this month.
The State Bank in September kept its policy rate unchanged at 13 percent for October and November amid fears of fiscal slippages and concern that inflation may not have peaked.
Inflation has recoiled from a record high last year but fears remain of commodity prices rising again, especially oil prices, the State Bank said.
Using 200001 as the base year, the CPI stood at 207.14 in September against 206.21 in August.
Sept Aug
Consumer price index 207.14 206.21
Month-on-month change (pct) 0.45 1.7
Year-on-year change (pct) 10.12 10.69