Pakistan recorded a historic drop in annual inflation, with the rate plunging to just 0.3% year-on-year (YoY) in April 2025, according to fresh data released by the Pakistan Bureau of Statistics (PBS) on Friday.
This marks a dramatic turnaround from May 2023, when annual inflation surged to a record high of 37.97%, the highest in the nation’s history.
Consumer Price Index (CPI) Trends
The General CPI inflation fell to 0.3% YoY in April 2025, compared to 0.7% in March 2025 and 17.3% in April 2024. On a month-on-month (MoM) basis, inflation declined by 0.8% in April, reversing the previous month’s 0.9% increase. For the first ten months of FY2025 (10MFY25), the average inflation stands at 4.73%, a substantial improvement over the 25.97% recorded during the same period last fiscal year.
In urban areas, CPI inflation dropped to 0.5% YoY in April, down from 1.2% in March and 19.4% a year earlier. MoM, urban inflation decreased by 0.7%, compared to a 0.8% rise in March.
Rural inflation showed a 0.1% YoY decline in April, after a flat reading in March and 14.5% in April 2024. MoM rural CPI fell by 1.0%, reversing a 1.1% rise seen a month earlier.
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SPI and WPI Inflation Also Down
The Sensitive Price Index (SPI) registered a YoY decline of 3.2% in April 2025, deeper than the 2.3% drop in March and sharply down from the 21.6% surge in April 2024. On a monthly basis, SPI dropped by 1.7%, compared to a 0.1% decrease in the previous month.
The Wholesale Price Index (WPI) fell by 2.2% YoY in April 2025, compared to a 1.6% decline in March and a 13.9% rise in April 2024. On an MoM basis, WPI dropped by 1.3%, following a 0.3% increase last month.
Conclusion
This sharp decline across all inflation indicators highlights a significant cooling in Pakistan’s price levels, offering relief to consumers and creating more room for monetary policy adjustments. The turnaround reflects improved supply chains, currency stability, and potentially lower global commodity prices.
