Pakistan’s consumer price index (CPI) inflation rate maintained its downward trend on Monday, hitting more than a 9-year low at 1.51 per cent year-on-year (YoY) in February.
Analysts have noted that the current scenario is one of disinflation, which indicates a decrease in the pace of the inflation rate, whereas deflation (the opposite of inflation) occurs when general price levels fall.
“Pakistan CPI for month of Feb-2025 has clocked in at 1.5pc, lowest reading in 113 months,” Topline Securities, a brokerage firm in Karachi, noted.
“Inflation came lower than market expectations,” it added. “Inflation during 8MFY25 has averaged at 5.85pc compared to 27.96pc in 8MFY24.”
Arif Habib Limited noted the number to be the “lowest since September 2015”.
According to Pakistan Bureau of Statistics (PBS), CPI inflation increased by 1.5pc on year-on-year basis in February 2025 as compared to 2.4pc in the previous month and 23.1pc in February 2024.
“On month-on-month basis, it decreased by 0.8pc in February 2025 as compared to an increase of 0.2pc in the previous month,” the statement read.
Year-on-year
Urban:
Food item prices that increased included: Pulse moong (32.65pc), besan (28.97pc), pulse gram (25.40pc), potatoes (22.88pc), fresh fruits (21.55pc), butter (21.12pc), honey (20.77pc), milk powder (20.58pc), and meat (18.59pc).
Non-food items prices that increased: Motor vehicle tax (168.79pc), footwears (31.9pc), dental services (26.55pc), drugs & medicines (16.53pc) and medical tests (15.48pc).
Rural:
Food item prices that increased: Besan (33.86pc), pulse moong (32.16pc), pulse gram (30.68pc), milk powder (26.42pc), meat (21.01pc), honey (20.5pc), potatoes (20.27pc), and fresh fruits (19.83pc).
Non-food items that increased: Motor vehicle tax (126.61pc), education (24.49pc), dental services (19.53pc), drugs and medicines (17.96pc), recreation and culture (16.25pc), cotton cloth (15.5pc), and woolen readymade garments (15.39pc).
Month-on-month
Urban:
Food items that increased: Fresh fruits (14.99pc), sugar (9.35pc), butter (5.61pc), condiments and spices (1.59pc), bakery and confectionary (1.19pc), beverages (1.16pc), and honey (1.12pc)
Non-food items prices that increased: Accommodation services (5.07pc), major tools & equipments (1.16pc), mechanical services (0.89pc), and doctor (Mbbs) clinic fee (0.80pc).
Rural:
Food items that increased: Fresh fruits (13.97pc), sugar (9.73pc), meat (0.91pc), condiments and spices (0.57pc), honey (0.56pc), beverages (0.51pc), readymade food (0.5pc) and milk fresh (0.44pc).
Non-food items that increased: Cleaning and laundering (2.88pc), recreation and culture (1.46pc), major tools & equipments (0.99pc) and dental services (0.95pc).
Tarar says PM welcomes inflation hitting record low
Information Minister Attaullah Tarar said Prime Minister Shehbaz Sharif welcomed inflation hitting a record low.
Addressing a press conference in Islamabad, he said: “The prime minister has welcomed inflation hitting a record low and its effects have started reaching the masses.
“We thank God for this success and PM Shehbaz has directed that inflation should be brought down further.”
He added that the prime minister would hold a progress review soon as well.
