ISLAMABAD – Another positive development on the economic side as headline inflation comes down to 1.5pc on a year-on-year basis in February 2025.
Data shared by Pakistan Bureau of Statistics (PBS) said the Consumer Price Index (CPI) plunged 0.8%, after a 0.2% increase in January and no change during last year.
Fresh data shows the average CPI for first eight months of FY25 stands at 5.85pc, compared to staggering 27.96pc during the same period last year. February’s inflation rate remains at lowest level recorded since September 2015.
The sharp decline in inflation shows continued positive shift in Pakistan’s economic landscape, especially considering that inflation had soared to an all-time high of 38% in May 2023.
Meanwhile, Finance Division predicted inflation to be within 2-3pc range, with expectations of a slight rise to 3-4% in March 2025.
Pakistan’s central bank took several moves to combat inflation by cutting key policy rate by 100 basis points to 12pc – in what was sixth consecutive interest rate cut since June 2024.
With inflation showing clear signs of easing, Pakistani government and experts remain optimistic about the economic outlook for remainder of 2025. The upcoming Monetary Policy meeting and further adjustments to policy rate will further cut inflationary trends.
Inflation in Pakistan drops to 5-Year low, reaches 2.4pc in Jan-25 amid economic recovery
