Pakistan’s inflation drops to 0.7% in March, lowest in three decades

Pakistan's inflation rate has reached its lowest level in three decades, with the Consumer Price Index (CPI) reporting a 0.7% year-on-year (YoY) increase in March 2025. This marks a significant decrease from 1.5% in February 2025 and a sharp drop from 20.7% in March 2024, indicating a trend of disinflation.

The Pakistan Bureau of Statistics revealed that while inflation decreased year-on-year, the CPI increased by 0.9% on a month-on-month basis in March, following a decrease of 0.8% in February.

Topline Securities noted that March's CPI of 0.7% is the lowest YoY reading in over 30 years. The average inflation for the first nine months of the fiscal year (9MFY25) stood at 5.25%, a significant drop from 27.06% during the same period last year.

Despite the overall decline in inflation, some items saw price increases. Urban areas saw higher prices for food items such as moong pulses (31.02%), butter (23.84%), and sugar (18.75%). Non-food items like motor vehicle tax (168.79%) and footwear (31.89%) also experienced price hikes. In rural areas, fresh fruits (24.62%) and tomatoes (22.11%) saw notable price increased.

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The latest inflation data reflects a mixed economic landscape, with certain commodity prices rising even as the overall inflation rate continues to decline.