Pakistan’s headline inflation plummeted to a record low of 0.3% year-on-year in April 2025, a dramatic drop from 17.3% during the same month last year, according to new data from the Pakistan Bureau of Statistics (PBS). The fall, driven largely by declining food and energy costs, marks the lowest inflation rate ever recorded in the country, as noted by Arif Habib Limited.
On a month-to-month basis, consumer prices dipped by 0.8% in April, reversing a 0.9% increase seen in March. Urban inflation eased to 0.5% year-on-year, while rural inflation slightly declined by 0.1%. Monthly, urban prices fell 0.7% and rural prices dropped 1.0%.
Over the first ten months of the current fiscal year (July–April FY25), average inflation stood at 4.73%, a major improvement from 25.97% during the same period last year.
The Sensitive Price Indicator (SPI), which tracks the cost of essential goods, also showed relief — down 3.2% year-on-year, following a 2.3% drop in March, and falling 1.7% month-on-month.
Notable price drops were recorded in food categories:
- Perishable foods: down 26.7% YoY
- Wheat: down 36%
- Onions: down nearly 75%
However, some items like pulse moong (+29.8%) and butter (+24.5%) saw price increases.
The Wholesale Price Index (WPI) dropped 2.2% annually and 1.3% monthly, while core inflation (excluding food and energy) eased to 7.4% in urban and 9.0% in rural areas — both lower than in March.
Electricity charges plunged 26.6%, contributing to a 2.6% decline in the housing and utilities sector. Non-food items saw mixed trends, with education costs rising 10.9% while transportation dropped 3.9%.
Trimmed mean core inflation — which smooths out volatile price changes — also fell to 3.8% in urban and 3.3% in rural regions, indicating underlying inflation pressures are softening.
