2025-03-12 04:08:59

In February 2025, Pakistan's Consumer Price Index (CPI) inflation rate dropped to 1.5% year-on-year, a significant decrease from 23.1% in February 2024, marking the lowest level in nearly a decade. 

 This decline is largely attributed to a favorable base effect from the previous year's high inflation and a substantial drop in food prices.

On a month-on-month basis, the CPI decreased by 0.83% in February 2025 compared to January 2025. The urban CPI recorded a decrease of 0.65%, while the rural CPI saw a decrease of 1.10%.

Despite this significant reduction in inflation, the State Bank of Pakistan maintained its key interest rate at 12% in March 2025, citing persistent price risks, including global tariff escalations and potential pressures from rising food and energy prices. 

Looking ahead, analysts anticipate a slight increase in inflation starting in May 2025, potentially influenced by seasonal factors such as the month of Ramadan, which often sees an uptick in food prices. 
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