Pakistan’s inflation rate fell by 0.83% in February 2025 to 1.52%, well below government forecasts of 2-3% and marking the lowest level seen in nine and a half years. A report by the Pakistan Bureau of Statistics indicated that urban inflation was at 1.8%, while rural areas experienced an inflation rate of 1.1%. The average inflation from July 2024 to February 2025 stood at 5.85%.
Fluctuations in Essential Goods
The report highlighted significant price drops for several key commodities. For instance, tomatoes fell by 57%, onions by 32%, potatoes by 20%, vegetables by 17%, and eggs by 14%. Other staples also became more affordable, with daal channa and tea dropping by 10%, gram flour by 9%, wheat by 3%, daal maash by 2.82%, and flour by 2.23%. Prices for chicken, lentils, fish, dairy products, fuel, transport, construction materials, electricity, and stationery also declined.
Read more: Weekly Inflation Records a Modest Decline
However, not all items saw a decrease. Prices for certain goods increased, with fruits up by 15%, sugar by 9.35%, butter by 5.61%, spices by 1.59%, and bakery items by 1.19%. In addition, edible oil, ghee, meat, rice, and dry milk experienced price hikes. Over the year, the cost of clothes and shoes rose by 13.80%, health services by 14.34%, and education by 10.87%. Overall, food and beverages were 4.15% cheaper annually, with perishable goods dropping by 20.30%.
Government Response and Economic Outlook
Prime Minister Shehbaz Sharif welcomed the decline in inflation, attributing it to the government’s robust economic policies as his administration nears its first anniversary. He emphasized that all government institutions are collaborating to boost investment and drive economic growth. The PM assured the public that stabilizing prices and ensuring that essential commodities remain affordable are top priorities for his government. He expressed hope for further reductions in inflation, promising continued relief for the people amid ongoing macroeconomic stability.
