KARACHI: Pakistan’s headline inflation dropped to just 0.3% year-on-year (YoY) in April 2025 — a historic low — compared to 17.3% in the same month last year and 0.7% in March, according to data released by the Pakistan Bureau of Statistics (PBS). The sharp decline was primarily driven by broad-based reductions in food and energy prices.
Brokerage house Arif Habib Limited noted that the latest reading marks the lowest inflation level ever recorded in the country.
On a month-on-month (MoM) basis, the Consumer Price Index (CPI) fell by 0.8% in April, reversing a 0.9% increase seen in March.
Urban inflation eased to 0.5% annually, with rural inflation dipping by 0.1%. Urban CPI fell 0.7% and rural CPI slid 1.0% on a MoM basis.
Inflation has been consistently falling. During July to April (10MFY25) inflation was recorded at 4.73%; contrary to this, during July to April FY24 inflation rate was pegged at 25.97%.
The Sensitive Price Indicator (SPI), a key gauge of essential items, also recorded a 3.2% year-on-year decline, deepening from a 2.3% fall in March. On a monthly basis, SPI fell 1.7%.
Food and non-alcoholic beverages saw steep declines. Perishable food items plunged 26.7% year-on-year, while wheat prices were down 36% and onions tumbled nearly 75%. In contrast, some staples like pulse moong and butter rose 29.8% and 24.5%, respectively.
Wholesale Price Index (WPI) inflation also showed relief, falling 2.2% year-on-year in April, compared with a 1.6% drop the previous month. WPI slipped 1.3% from March, when it had posted a 0.3% increase.
Core inflation — excluding food and energy — eased to 7.4% in urban areas and 9.0% in rural regions, down from 8.2% and 10.2% in March, respectively. However, on a monthly basis, core inflation edged higher, with urban prices rising 1.3% and rural prices 0.9%.
Housing, water, electricity, gas, and fuels fell 2.6% YoY, with electricity charges alone dropping 26.6%. Non-food categories showed mixed trends: education surged 10.9% while transport costs fell 3.9% annually.
The trimmed mean core inflation rate, seen as a measure of underlying inflation trends, declined to 3.8% in urban areas and 3.3% in rural areas year-on-year. Month-on-month, it held steady at 0.3% in urban areas and fell 0.1% in rural regions.
