Pakistan, July 2 -- Pakistan seems to have entered the new fiscal year with some semblance of economic relief. Headline inflation eased to 11.1 per cent in June from 11.7 per cent in May, while the consumer price index also fell 0.30 per cent month-on-month, mainly on account of lower transport costs, motor fuel and electricity charges. This is welcome, particularly after months in which imported energy costs and geopolitical uncertainty kept price expectations unsettled.

Contrary to what one may hope, this is not yet a turning point. Average inflation for FY26 still rose to 7.05 per cent, compared to 4.49 per cent a year earlier. That means households are not experiencing relief from a clean base. Sadly, they are simply absorbing a slow...