Inflation in February 2025 Slows to 1.5%

Headline inflation rate slowed to 1.5% year-on-year in February 2025, its lowest value since 2015.

According to data issued by the Pakistan Bureau of Statistics (PBS), inflation stood at 23.1% in February 2024 and 2.4% in January 2025. On month-on-month basis, it decreased by 0.8% compared to an increase of 0.2% in the previous month and no change in February 2024.

In the first 8 months of fiscal year 2024-25, inflation has averaged at 5.85% compared to 27.96% in the corresponding period last year.

Urban areas

In urban areas, inflation slowed to 1.8% on year-on-year basis in February 2025 as compared to 2.7% in the previous month and 24.9% in February 2024. On a month-on-month basis, it decreased by 0.7% in February 2025 as compared to an increase of 0.2% in the previous and corresponding month of February 2024. 

Food item prices that increased in urban areas on a year-on-year basis included Pulse moong (32.65%); besan (28.97%); pulse gram (25.40%); potatoes (22.88%); fresh fruits (21.55%); butter (21.12%); honey (20.77%); milk powder (20.58%); and meat (18.59%).

Non-food items prices that increased comprised motor vehicle tax (168.79%); footwear (31.9%); dental services (26.55%); drugs and medicines (16.53%); and medical tests (15.48%).

At the same time, the prices of food items that decreased included onions (56.59%); tomatoes (48.42%); wheat (36.13%); wheat flour (34.7%); fresh vegetables (27.04%); Pulse Mash (12.19%); wheat products (12.12%); Pulse Masoor (11.22%); tea (10.20%); and eggs (9.36%).

In non-food items, prices that decreased comprised electricity charges (16.58%); motor fuel (5.09%); Liquefied Hydrocarbons (2.76%); and communication apparatus (1.19%).

Rural areas

In rural areas, inflation slowed to 1.1% against January 2025 and increased to 1.09% over the same month last year.

Food item prices that increased in rural areas on a year-on-year basis included Besan (33.86%); Pulse Moong (32.16%); Pulse Gram (30.68%); milk powder (26.42%); meat (21.01%); and honey (20.5%).

Non-food items prices that increased comprised motor vehicle tax (126.61%); education (24.49%); dental services (19.53%); drugs and medicines (17.96%); recreation and culture (16.25%); cotton cloth (15.5%); woolen readymade garments (15.39%); furniture and furnishing (13.75%); plastic products (13.66%); and stationery (12.55%).

At the same time, the prices of food items that decreased comprised onions (54.71%); tomatoes (43.89%); wheat (36.74%); wheat flour (36.52%); fresh vegetables (30.05%); wheat products (13.15%); eggs (10.6%); Pulse Mash (10.13%); Pulse Masoor (7.05%); tea (5.89%); rice (5.60%); and chicken (2.86%).

Non-food items prices that decreased were electricity charges (16.58%); motor fuels (5.65%); and Liquefied Hydrocarbons (3.33%).