Pakistan’s Average Inflation in FY25 Falls to Lowest Level in 9 Years

Pakistan’s annual inflation clocked in at 3.2 percent on a year-on-year basis in June 2025 compared to 3.5 percent in the previous month and 12.6 percent in June 2024, according to data issued by the Pakistan Bureau of Statistics (PBS) on Tuesday. For the outgoing fiscal year i.e. FY25, average headline inflation clocked in at 4.49 percent, down from 23.41 percent in FY24. According to brokerage firm Arif Habib Limited, average inflation hit a nine-year low in FY25, the lowest since FY16 when it came in at 2.9 percent. The brokerage house attributed the decline to a high base, falling food prices, and lower transport costs due to reduced petroleum prices. CPI inflation Urban, decreased to 3.0 percent on year-on-year basis in June 2025 as compared to 3.5 percent of the previous month and 14.9 percent in June 2024. On month-on-month basis, it remained stable at 0.1 percent in June 2025 as compared to 0.1 percent in the previous month and 0.6 percent in June 2024. CPI inflation Rural, increased by 3.6 percent on year-on-year basis in June 2025 as compared to an increase of 3.4 percent in the previous month and 9.3 percent in June 2024. On month-on-month basis, it increased by 0.5 percent in June 2025 as compared to a decrease of 0.5 percent in the previous month and an increase of 0.3 percent in June 2024. SPI inflation on YoY decreased by 1.9 percent in June 2025 as compared to a decrease of 0.6 percent a month earlier and an increase of 16.6 percent in June 2024. On MoM basis, no change measured in June 2025 as compared to a decrease of 1.0 percent a month earlier and an increase of 1.3 percent in June 2024. WPI inflation on YoY basis increased by 0.6 percent in June 2025 as compared to an increase of 0.4 percent in the previous month and 10.6 percent in June 2024. On month-on-month basis, it increased to 0.6 percent in June, 2025 as compared to no change in the previous month and an increase of 0.4 percent in June 2024.