Inflation rate decreased by 0.18% in the weekly SPI report.
PAKISTAN'S WEEKLY INFLATION SHOWS SLIGHT INCREASE, YET REMAINING LOW COMPARED TO PREVIOUS YEAR
Recently released data by Pakistan Bureau of Statistics (PBS) reveals that Pakistan's weekly inflation rate for the week ended on June 26, 2025, saw a small bump of 0.27%. The reduction in prices of various goods, such as eggs, chicken, bananas, onions, potatoes, wheat flour, and several other commodities contributed to a decrease in the Sensitive Price Index (SPI).
The PBS also indicated a year-on-year (YoY) decrease of 1.52% in SPI, as prices of onions, tomatoes, electricity, garlic, potatoes, maash, tea, wheat flour, masoor, and diesel experienced significant drops. Remarkably, the YoY inflation had dipped as low as 0.3% in April 2025, but it spiked again to 3.5% in May 2025.
Despite the recent increase, inflation levels continue to remain far below the extremely high rates seen in 2023, when it peaked at 37.97% YoY in May 2023. The sharp decline from these sky-high inflation rates to more manageable levels in 2024 and 2025 can be attributed to the base effect - the statistical impact of comparing prices to last year's figures when inflation was at record highs.
The Consumer Price Index (CPI) for June 2025 was expected to remain low at around 3.1%, indicating ongoing moderation of inflation. This prediction is based on market price indices tracked weekly. Analysts attribute this short-term easing primarily to lower food prices, which have a considerable weight in the CPI basket.
As for the overall inflation trend, contributing factors include the federal budget for fiscal year 2025-26, government measures aimed at managing inflation expectations and fiscal discipline, and improvements in food price stability. The Finance Ministry's expectations of sustained upward trends in exports and remittances also contribute to the modulation of inflation.
In summary, while inflation rates have recently shown a slight rebound, they still remain far lower compared to the rates seen in 2023. Inflation declines are primarily attributed to the base effect and temporary reductions in food prices. Factors such as government fiscal policy, external economic support through exports and remittances, and improvements in food price stability have contributed to the overall decrease in inflation.
- The index that saw a decrease due to the lower prices of various goods like eggs, chicken, and wheat flour is the Sensitive Price Index (SPI), a key indicator in the realm of personal-finance and business.
- Inflation levels in Pakistan's finance sector, such as prices of goods like onions, tomatoes, and diesel, have shown a year-on-year (YoY) decrease, according to the Pakistan Bureau of Statistics (PBS).
- The ongoing moderation of inflation, as indicated by the Consumer Price Index (CPI), is positively impacting the personal-finance sector, with analysts expecting the June 2025 CPI to remain around 3.1%, mainly due to lower food prices.
