Pakistan’s inflation rate, measured through the Consumer Price Index (CPI), continued to decline in February, falling to 1.51% year-on-year (YoY) — the lowest level in more than nine years, according to official data released on Monday.
Analysts explained that the economy is currently experiencing disinflation, meaning prices are still rising but at a slower pace. This is different from deflation, where prices actually fall.
Karachi-based brokerage Topline Securities highlighted that February 2025’s inflation reading is the lowest in 113 months. The firm also noted that the figure came in lower than market expectations, with average inflation for the first eight months of FY25 recorded at 5.85%, compared to 27.96% during the same period last year (8MFY24).
Arif Habib Limited echoed the sentiment, noting it as the lowest inflation rate since September 2015.
According to data from the Pakistan Bureau of Statistics (PBS), inflation slowed to 1.5% in February 2025, compared to 2.4% in January 2025 and a much higher 23.1% in February 2024.
On a month-on-month basis, inflation actually declined by 0.8% in February, compared to a slight increase of 0.2% in January.
Year-on-Year Inflation Breakdown
Urban Areas:
- Rising food prices: Pulse moong (32.65%), besan (28.97%), pulse gram (25.40%), potatoes (22.88%), fresh fruits (21.55%), butter (21.12%), honey (20.77%), milk powder (20.58%), meat (18.59%)
- Rising non-food prices: Motor vehicle tax (168.79%), footwear (31.9%), dental services (26.55%), medicines (16.53%), medical tests (15.48%)
Rural Areas:
- Rising food prices: Besan (33.86%), pulse moong (32.16%), pulse gram (30.68%), milk powder (26.42%), meat (21.01%), honey (20.5%), potatoes (20.27%), fresh fruits (19.83%)
- Rising non-food prices: Motor vehicle tax (126.61%), education (24.49%), dental services (19.53%), medicines (17.96%), recreation and culture (16.25%), cotton cloth (15.5%), woolen readymade garments (15.39%)
Month-on-Month Inflation Breakdown
Urban Areas:
- Rising food prices: Fresh fruits (14.99%), sugar (9.35%), butter (5.61%), condiments & spices (1.59%), bakery & confectionery (1.19%), beverages (1.16%), honey (1.12%)
- Rising non-food prices: Accommodation services (5.07%), major tools & equipment (1.16%), mechanical services (0.89%), doctor’s clinic fee (0.80%)
Rural Areas:
- Rising food prices: Fresh fruits (13.97%), sugar (9.73%), meat (0.91%), condiments & spices (0.57%), honey (0.56%), beverages (0.51%), readymade food (0.5%), fresh milk (0.44%)
- Rising non-food prices: Cleaning & laundering (2.88%), recreation & culture (1.46%), major tools & equipment (0.99%), dental services (0.95%)
