The Pakistan inflation rate for FY2025 plummeted to 4.49%, a sharp drop from 23.21% in FY2024, as per the Pakistan Bureau of Statistics (PBS). This marks a notable economic improvement, easing financial burdens on households. The Consumer Price Index (CPI) recorded 3.2% year-over-year (YoY) inflation in June 2025, down from 3.5% in May and 12.6% in June 2024.
Monthly Inflation Trends
On a month-on-month (MoM) basis, CPI inflation rose by 0.2% in June 2025, reversing May’s 0.2% decline. This was lower than the 0.5% increase in June 2024. Urban CPI inflation remained stable at 0.1% MoM, while rural CPI inflation climbed by 0.5% after a 0.5% drop in May. These figures indicate controlled price fluctuations.
Urban vs. Rural Inflation
Urban CPI inflation decreased to 3.0% YoY in June 2025, compared to 3.5% in May and 14.9% in June 2024. Rural CPI inflation rose slightly to 3.6% YoY, up from 3.4% in May but significantly below 9.3% a year ago. The divergence suggests varying economic pressures between urban and rural regions.
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Decline in SPI and WPI Inflation
The Sensitive Price Index (SPI) inflation fell by 1.9% YoY in June 2025, improving from a 0.6% decline in May and a 16.6% surge in June 2024. MoM, SPI remained unchanged. Wholesale Price Index (WPI) inflation rose marginally to 0.6% YoY from 0.4% in May, far below June 2024’s 10.6%. MoM, WPI increased by 0.6%.
Core Inflation Eases Further
Core inflation, measured by non-food non-energy (NFNE) for urban areas, dropped to 6.9% YoY in June from 7.3% in May and 12.2% in June 2024. Rural NFNE inflation eased to 8.6% YoY from 8.8% in May and 17.0% last year. Trimmed mean core inflation also declined, signaling broad-based price stability.
Economic Relief for Consumers
The sharp drop in inflation offers much-needed relief to consumers after years of high prices. Lower food and energy costs contributed significantly to this trend. Policymakers must sustain these improvements through prudent fiscal and monetary measures. The positive shift reflects effective economic reforms and stabilization efforts.
Inflation Data Overview (June 2025)
| Indicator | YoY (%) | MoM (%) |
|---|---|---|
| CPI Inflation | 3.2 | 0.2 |
| Urban CPI | 3.0 | 0.1 |
| Rural CPI | 3.6 | 0.5 |
| SPI Inflation | -1.9 | 0.0 |
| WPI Inflation | 0.6 | 0.6 |
| Core NFNE (Urban) | 6.9 | 0.2 |
| Core NFNE (Rural) | 8.6 | 0.7 |
Conclusion
Pakistan’s inflation decline in FY2025 highlights economic recovery. Lower CPI, SPI, and WPI figures indicate reduced price pressures. Sustaining this trend requires continued policy focus. The data presents optimism for future economic stability, benefiting businesses and consumers alike. Authorities must remain vigilant to prevent inflationary spikes in the coming fiscal year.
