Pakistan’s Inflation At its Lowest in Over 3 Decades

Pakistan’s Consumer Price Index (CPI)-based inflation slowed to 0.7 percent on a year-on-year basis in March 2025, compared to an increase of 1.5 percent in the previous month and 20.7 percent in March 2024, according to the Pakistan Bureau of Statistics (PBS). According to Topline Securities, this is the lowest inflation rate in over three decades. Inflation during the first nine months of FY25 averaged 5.25 percent compared to 27.06 percent in the same period of FY24. CPI inflation in urban areas decreased to 1.2 percent on a year-on-year basis in March 2025, compared to 1.8 percent in the previous month and 21.9 percent in March 2024. On a month-on-month basis, it increased by 0.8 percent in March 2025, compared to a decrease of 0.7 percent in the previous month and an increase of 1.4 percent in March 2024. CPI inflation in rural areas showed no change on a year-on-year basis in March 2025, compared to 1.1 percent in the previous month and 19.0 percent in March 2024. On a month-on-month basis, it increased by 1.1 percent in March 2025, compared to a decrease of 1.1 percent in the previous month and an increase of 2.1 percent in March 2024. SPI inflation on a year-on-year basis decreased to negative 2.3 percent in March 2025, compared to negative 0.2 percent a month earlier and 25.9 percent in March 2024. On a month-on-month basis, it decreased by 0.1 percent in March 2025, compared to a decrease of 1.6 percent a month earlier and an increase of 2.1 percent in March 2024. WPI inflation on a year-on-year basis decreased by 1.6 percent in March 2025, compared to a decrease of 0.7 percent a month earlier and an increase of 14.8 percent in March 2024. On a month-on-month basis, it increased by 0.3 percent in March 2025, compared to a decrease of 0.2 percent in the previous month and an increase of 1.3 percent in the corresponding month of the previous year, i.e., March 2024. Measured by the non-food, non-energy index in urban areas, core inflation increased by 8.2 percent on a year-on-year basis in March 2025, compared to 7.8 percent in the previous month and 12.8 percent in March 2024. On a month-on-month basis, it increased by 0.5 percent in March 2025, compared to 0.3 percent in the previous month and an increase of 0.1 percent in the corresponding month of the previous year, i.e., March 2024. Measured by the non-food, non-energy index in rural areas, core inflation decreased to 10.2 percent on a year-on-year basis in March 2025, compared to 10.4 percent in the previous month and 20.0 percent in March 2024. On a month-on-month basis, it increased by 0.7 percent in March 2025, compared to an increase of 0.4 percent in the previous month and an increase of 0.8 percent in the corresponding month of the previous year, i.e., March 2024. Measured by the 20 percent weighted trimmed mean in urban areas, core inflation increased by 4.8 percent on a year-on-year basis in March 2025, compared to 4.6 percent in the previous month and 14.8 percent in March 2024. On a month-on-month basis, it increased by 0.3 percent in March 2025, compared to an increase of 0.1 percent in the previous month and an increase of 0.6 percent in the corresponding month of the previous year, i.e., March 2024. Measured by the 20 percent weighted trimmed mean in rural areas, core inflation decreased to 4.8 percent on a year-on-year basis in March 2025, compared to 5.2 percent in the previous month and 18.4 percent in March 2024. On a month-on-month basis, it increased by 0.4 percent in March 2025, compared to an increase of 0.1 percent in the previous month and an increase of 0.9 percent in the corresponding month of the previous year, i.e., March 2024.