Pakistan's Consumer Price Index (CPI) based inflation slowed to 2.41 percent year-on-year in January 2025, a significant drop from 4.1 percent in the previous month and 28.3 percent in January 2024, according to the Pakistan Bureau of Statistics (PBS). This is the lowest reading in 111 months, or approximately 9.25 years, as reported by Topline Securities.

Inflation for the first seven months of the fiscal year 2025 (7MFY25) averaged 6.5 percent, compared to 28.73 percent during the same period in the previous year (7MFY24).

Urban CPI inflation decreased to 2.7 percent year-on-year in January 2025, down from 4.4 percent in December 2024 and 30.2 percent in January 2024. On a month-on-month basis, urban inflation increased slightly by 0.2 percent in January 2025.

Rural CPI inflation fell to 1.9 percent year-on-year in January 2025, compared to 3.6 percent in the previous month and 25.7 percent in January 2024. Month-on-month, rural inflation rose by 0.2 percent in January 2025.

The Sensitive Price Indicator (SPI) inflation dropped to 0.7 percent year-on-year in January 2025, down from 4.2 percent a month earlier and 36.2 percent in January 2024. On a month-on-month basis, SPI inflation decreased to 1.4 percent in January 2025.

Wholesale Price Index (WPI) inflation decreased to 0.6 percent year-on-year in January 2025 from 1.9 percent the previous month and 27.0 percent in January 2024. On a month-on-month basis, WPI inflation increased by 0.2 percent in January 2025.

Core inflation, measured by non-food non-energy (NFNE), saw a decline. Urban core inflation dropped to 7.8 percent year-on-year in January 2025, down from 8.1 percent the previous month and 17.8 percent in January 2024. Rural core inflation decreased to 10.4 percent year-on-year in January 2025, compared to 10.7 percent in the previous month and 24.6 percent in January 2024. Both urban and rural core inflation increased on a month-on-month basis in January 2025.

Core inflation, measured by a 20 percent weighted trimmed mean, also showed a decrease. Urban core inflation fell to 5.4 percent year-on-year in January 2025, down from 6.2 percent in the previous month and 22.1 percent in January 2024. Rural core inflation decreased to 5.4 percent year-on-year in January 2025, compared to 6.5 percent the previous month and 25.8 percent in January 2024. Both urban and rural trimmed mean core inflation increased on a month-on-month basis in January 2025.

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