Inflation in Pakistan rises to 3.2% in June 2025

Pakistan’s headline inflation clocked in at 3.2% on a year-on-year (YoY) basis in June 2025, a reading lower than that of May 2025, when it had stood at 3.5%, showed Pakistan Bureau of Statistics (PBS) data on Tuesday.

On month-on-month (MoM) basis, it increased by 0.2% in June 2025, as compared to a decrease of 0.2% in the previous month and an increase of 0.5% in June 2024.

Consumer Price Index (CPI) inflation average during FY25 stood at 4.49% as compared to 23.41% in FY24.

Inflation in Pakistan has been a significant and persistent economic challenge, particularly in recent years. In May 2023, the CPI inflation rate hit a record high of 38%. However, it has been on a downward trajectory since then.

The CPI reading is in line with the government’s expectations. The Finance Ministry in its monthly economic report expected inflation to ease to a range between 3-4% in June.

“On the external front, higher remittances and exports will continue to keep the current account in surplus for FY 2025,” read the monthly outlook.

Earlier, the Economic Survey 2024-25 noted that inflation is projected to remain within the range of 4.5-5% during FY25, supported by a sharp decline in the prices of perishable food items and adequate stocks of key non-perishable commodities.

Meanwhile, the latest CPI reading was also in line with the projections made by several brokerage houses.

JS Global projected Pakistan’s headline inflation to lower to 3.1% in June.

“Following a 3.5% YoY reading in May 2025, the CPI is expected to be at 3.1% YoY in June 2025. The base effect is now fading, signalling a return to normalised price trends,” said JS Global.

Meanwhile, Insight Securities, another brokerage house, expected headline inflation to clock in at 3.2% in June.

Urban, rural inflation

The PBS said CPI inflation urban decreased to 3% on year-on-year basis in June 2025, as compared to 3.5% of the previous month and 14.9% in June 2024.

On month-on-month basis, it remained stable at 0.1% in June 2025, as compared to 0.1% in the previous month and 0.6% in June 2024.

CPI inflation rural increased by 3.6% on year-on-year basis in June 2025, as compared to an increase of 3.4% in the previous month and 9.3% in June 2024.

On month-on-month basis, it increased by 0.5% in June 2025, as compared to a decrease of 0.5% in the previous month and an increase of 0.3% in June 2024