Pakistan's Inflation Drops to Historic Low of 0.3% in April 2025
- Abeera Marium Siddiqui
- May 2, 2025
- 4:55 pm
- 47
- Business
Pakistan’s inflation drops to a historic low of 0.3% in April 2025. This marks a huge shift in the country’s economic situation. According to the Pakistan Bureau of Statistics (PBS), this is the lowest inflation rate ever recorded.
Just a year ago, in May 2023, inflation in Pakistan had reached a record high of 37.97%. The latest data shows a major decrease across different sectors.
CPI Inflation Breakdown
The overall Consumer Price Index (CPI) inflation for April 2025 was 0.3%. This is down from 0.7% in March 2025. When compared to April 2024, which had a much higher 17.3%, this is a significant drop. On a month-to-month basis, inflation decreased by 0.8% in April 2025. This is a sharp contrast to the 0.9% increase seen in March.
The average inflation for the first 10 months of FY25 is now 4.73%. This is much lower than the 25.97% seen during the same period last year.
Urban vs Rural Inflation
Looking at urban and rural areas, both saw decreases in inflation. In urban areas, the CPI inflation dropped to 0.5% in April 2025. This is down from 1.2% in March and 19.4% in April 2024. On a month-to-month basis, urban inflation decreased by 0.7%.
In rural areas, inflation decreased by 0.1% on a year-on-year basis. Last month, it had stayed the same. A year ago, it was 14.5%. On a month-to-month basis, rural inflation fell by 1% in April 2025.
Other Inflation Indicators
The Sensitive Price Indicator (SPI) showed a decrease of 3.2% in April 2025, compared to a 2.3% decrease the previous month and 21.6% in April 2024.
The Wholesale Price Index (WPI) also saw a drop of 2.2% on a year-on-year basis. This compares to a smaller 1.6% decrease in March and a large 13.9% increase in April 2024. On a month-to-month basis, WPI inflation fell by 1.3%.
Non-Food and Non-Energy Inflation
Inflation for non-food and non-energy items also dropped. In urban areas, this inflation decreased to 7.4% year-on-year in April 2025. It was 8.2% in March and 13.1% a year ago. On a month-to-month basis, this inflation rose by 1.3%.
In rural areas, non-food and non-energy inflation dropped to 9.0% year-on-year. Last month, it was 10.2%, and in April 2024, it was 19.3%. On a month-to-month basis, rural inflation increased by 0.9%.
These changes in inflation across different sectors show that Pakistan’s economy is stabilizing after a period of high inflation. The data from PBS suggests that inflation will continue to decrease in the coming months.
