Pakistan is expected to see its inflation rate drop below 1% in March 2025, marking the lowest level in three decades. According to a report from Topline Securities, the Consumer Price Index (CPI) is projected to be between 0.5% and 1.0% year-on-year (YoY), with a month-on-month (MoM) growth of 0.9%.
This brings the average inflation for the first nine months of the current financial year (FY25) to approximately 5.38%, a significant decrease from the 27.06% recorded during the same timeframe last year. The substantial drop signals improved economic stability and a slowdown in price increases compared to previous years.
However, certain food items are anticipated to see price hikes. The costs of tomatoes, fruits, and chicken are expected to rise, which will contribute to a minor uptick in food inflation. Conversely, areas such as housing and transportation may experience slight price decreases, helping to balance the overall inflation rate.
Economists now predict that Pakistan’s overall inflation for FY25 will remain between 5% and 6%. This is a favorable development for consumers, as slower price increases lead to reduced financial pressure on households. Furthermore, a lower inflation rate could stimulate economic growth and enhance purchasing power.
The reduction in inflation also demonstrates improved fiscal management and better supply chains. Policymakers are likely to continue overseeing essential commodity prices to ensure stability. While challenges such as increasing food prices persist, the general outlook for Pakistan’s economy is becoming increasingly positive.
With inflation rates stabilizing, both businesses and consumers can anticipate more consistent pricing, which builds confidence in the marketplace. As Pakistan progresses through the year, it will be essential to maintain these lower inflation rates for long-term economic advancement.
