Core inflation measured by the Consumer Price Index (CPI) decelerated further to 0.3 per cent during April as compared to 0.7pc recorded during March, the Pakistan Bureau of Statistics (PBS) reported on Friday.

According to the PBS data, CPI-based inflation during April last year was recorded at 17.3pc.

On a month-on-month basis (MoM), it decreased by 0.8pc in April 2025 as compared to an increase of 0.9pc in the previous month and a decrease of 0.4pc in April 2024.

The PBS data further showed that CPI inflation for urban (cities and towns of the country) decreased to 0.5pc on a year-on-year (YoY) basis in April 2025 as compared to 1.2pc of the previous month and 19.4% in April 2024.

On a MoM basis, it decreased by 0.7pc in April 2025 as compared to an increase of 0.8pc in the previous and a decrease of 0.1pc in April 2024.

The CPI inflation for rural (villages of the country), decreased by 0.1pc on a YoY basis in April 2025 as compared to no change measured in the previous month and 14.5pc in April 2024.

On a MoM basis, it decreased by 1pc in April 2025 as compared to an increase of 1.1pc in the previous month and a decrease of 0.9pc in April 2024.

The Sensitive Price Indicator (SPI) inflation on YoY basis decreased by 3.2pc in April 2025 as compared to a decrease of 2.3pc a month earlier and 21.6pc in April 2024.

On a MoM basis, it decreased by 1.7pc in April 2025 as compared to a decrease of 0.1pc a month earlier and a decrease of 0.7pc in April 2024.

The Wholesale Price Index inflation on YoY basis decreased by 2.2pc in April 2025 as compared to a decrease of 1.6pc a month earlier and an increase of 13.9pc in April 2024.

On MoM basis, it decreased by 1.3pc in April 2025 as compared to an increase of 0.3pc in the previous month and a decrease of 0.7pc of the corresponding month of last year i.e. April 2024.

The core inflation measured by non-food non-energy urban decreased to 7.4pc on a YoY basis in April 2025 as compared to 8.2pc of the previous month and an increase of 13.1pc in April 2024.

On a MoM basis, it increased by 1.3pc in April 2025 as compared to 0.5pc measured in the previous month and an increase of 2.1pc in the corresponding month of last year i.e. April, 2024.

The core inflation measured by non-food non-energy rural decreased to 9pc on a YoY basis in April 2025 as compared to 10.2pc of the previous month and an increase of 19.3pc in April 2024.

On a MoM basis, it increased by 0.9pc in April 2025 as compared to an increase of 0.7pc measured in the previous month and an increase of 2.0pc in the corresponding month of last year i.e. April 2024.

Yousuf M. Farooq, director research at Chase Securities, said a relatively tight monetary and fiscal policy over the past year has led to a “sharp decline in inflation”.

“A comfortable current account balance, a stable currency, and softer commodity prices have also contributed to the disinflation trend,” Farooq said.

He said that as long as Pakistan remained under the programme with the International Monetary Fund, the government was expected to maintain fiscal discipline and avoid overspending, supporting continued price stability.

“While interest rates are expected to decline, the pace of easing is likely to be gradual, with the central bank expected to remain cautious, prioritising reserve accumulation,” he said.