Pakistan’s Inflation Eases to 3% in August 2025
September 1, 2025
Pakistan’s headline inflation slowed to 3% year-on-year (YoY) in August 2025, down from 4.1% in July, according to the Pakistan Bureau of Statistics (PBS).
On a month-on-month (MoM) basis, inflation fell 0.65%, with urban areas showing a sharper decline of 0.73% compared to 0.52% in rural areas.
The drop was mainly driven by falling prices of perishable food items such as fresh fruits and vegetables and a reduction in electricity charges.
Food Prices: Perishable foods saw a 12.07% monthly decline, while non-perishable items like rice, milk, and meat rose slightly by 0.57%.
Energy Costs: Electricity bills dropped by 6.87%, and motor fuel prices fell 1.51%, further supporting lower inflation.
Non-Food Items: Some categories, including education (+1.28%) and health services (+0.71%), saw modest increases.
Yearly Trends: On a YoY basis, urban inflation rose 3.38%, while rural areas recorded 2.43%, with perishable food price drops helping to keep overall inflation in check.
Average Inflation FY2025-26: For July-August 2025, the average inflation was 3.53%, with urban areas at 3.90% and rural areas at 2.98%.
