ISLAMABAD, March 3 (Alliance News): Pakistan’s inflation rate fell to 1.5% year-on-year (YoY) in February 2025, marking its lowest level since September 2015, according to data from the Pakistan Bureau of Statistics (PBS).
This represents a significant decline from January’s 2.4%, with a month-on-month drop of 0.9%.
For the first eight months of the fiscal year (July-February), the average inflation rate stood at 5.85%, a sharp contrast to 27.96% in the same period last year. In urban areas, inflation fell to 1.8%, while rural inflation stood at 1.1%.
Pakistan’s economic recovery has been supported by a $7 billion International Monetary Fund (IMF) facility secured in September 2024. Authorities attribute the inflation decline to economic stabilization under the IMF program.
The Finance Ministry had forecast inflation to stabilize between 2.0% and 3.0% in February and rise slightly to 3.0%-4.0% by March.
Analysts warn of a possible uptick in food inflation during Ramadan despite the current trend being driven by a significant drop in staple prices.
