- February’s inflation beats forecasts from the Ministry of Finance.
- Consumer price inflation in January 2025 was 2.4%.
- Urban inflation drops to 1.8%, while rural areas died at 1.1%.
Islamabad: marking its lowest level since September 2015, inflation based on consumer price index (ICC) in Pakistan fell to 1.5% in annual sliding (GO) in February 2025, against 2.4% recorded during the first month of this year, according to data from Pakistan Bureau (PBS).
In February 2025, the inflation of major titles experienced a monthly drop of 0.9% – unlike an increase of 0.2% in January and no change recorded in February 2024.
The average inflation rate for the first eight months (July -February) of this financial year (8mfy25) recorded 5.85% – a massive drop against 27.96% recorded during the same period last year.
By more decomposing figures, inflation in urban areas fell to 1.8% in February, while in rural areas, it arrived at 1.1% for the month being revised.
Pakistan, currently reinforced by an installation of $ 7 billion in the International Monetary Fund (IMF) granted in September, sails in an economic recovery. The authorities have credited the downward trend in inflation to economic stabilization within the framework of the IMF program.
In its monthly report on the economic prospects published last week, the Ministry of Finance thought that inflation in February would hover between 2.0 and 3.0%, continuing its downward trend compared to the previous year.
The ministry also planned a slight increase to 3.0 to 4.0% by March 2025.
“A favorable basic effect of high inflation of last year has contributed to this result. We are planning an increase in food inflation during Ramadan,” said Waqas Ghani, research manager at JS Global.
He added that the data was mainly motivated by a drop in food inflation, with significant price reductions in staple food.
– Additional Reuters entry