Pakistan’s Inflation at its Lowest in Nearly a Decade

Pakistan’s Consumer Price Index (CPI) based inflation slowed to 2.41 percent on a year-on-year basis in January 2025 as compared to an increase of 4.1 percent in the previous month and 28.3 percent in January 2024, according to the Pakistan Bureau of Statistics (PBS). According to Topline Securities, this is the lowest reading in 111 months (9.25 years). Inflation during 7MFY25 has averaged 6.5 percent compared to 28.73 percent in 7MFY24. CPI inflation Urban decreased to 2.7 percent on a year-on-year basis in January 2025 as compared to 4.4 percent in the previous month and 30.2 percent in January 2024. On a month-on-month basis, it increased to 0.2 percent in January 2025 as compared to a negative change of 0.1 percent in the previous month and an increase of 1.8 percent in January 2024. CPI inflation Rural decreased to 1.9 percent on a year-on-year basis in January 2025 as compared to 3.6 percent in the previous month and 25.7 percent in January 2024. On a month-on-month basis, it increased by 0.2 percent in January 2025 as compared to 0.3 percent in the previous month and an increase of 1.9 percent in January 2024. SPI inflation on YoY decreased to 0.7 percent in January 2025 as compared to 4.2 percent a month earlier and 36.2 percent in January 2024. On a MoM basis, it decreased to 1.4 percent in January 2025 as compared to 0.8 percent a month earlier and an increase of 2.0 percent in January 2024. WPI inflation on a YoY basis decreased to 0.6 percent in January 2025 as compared to 1.9 percent a month earlier and an increase of 27.0 percent in January 2024. On an MoM basis, it increased by 0.2 percent in January 2025 as compared to a decrease of 0.4 percent in the previous month, and a 1.5 percent change was observed in the corresponding month of last year i.e. January 2024. Measured by non-food non-energy Urban decreased to 7.8 percent on a YoY basis in January 2025 as compared to 8.1 percent in the previous month and 17.8 percent in January 2024. On an MoM basis, it increased by 0.8 percent in January 2025 as compared to 0.2 percent in the previous month and an increase of 1.1 percent in the corresponding month of last year i.e. January 2024. Measured by non-food non-energy Rural decreased to 10.4 percent on a YoY basis in January 2025 as compared to 10.7 percent in the previous month and 24.6 percent in January 2024. On an MoM basis, it increased by 0.9 percent in January 2025 as compared to an increase of 0.6 percent in the previous month and an increase of 1.2 percent in the corresponding month of last year i.e. January 2024. Measured by a 20 percent weighted trimmed mean Urban decreased to 5.4 percent on a YoY basis in January 2025 as compared to 6.2 percent in the previous month and 22.1 percent in January 2024. On an MOM basis, it increased by 0.6 percent in January 2025 as compared to 0.1 percent in the previous month and an increase of 1.0 percent in the corresponding month of last year i.e. January 2024. Measured by a 20 percent weighted trimmed mean Rural decreased to 5.4 percent on a YoY basis in January 2025 as compared to 6.5 percent in the previous month and 25.8 percent in January 2024. On an MoM basis, it increased by 0.7 percent in January 2025 as compared to 0.6 percent in the previous month and an increase of 1.2 percent in the corresponding month of last year i.e. January 2024.