Pakistan’s inflation rate for March 2025 is projected to fall below 1%, making it the lowest in 30 years. As per a report from Topline Securities, the Consumer Price Index (CPI) is estimated to range between 0.5% and 1.0% year-on-year (YoY), with a month-on-month (MoM) increase of 0.9%.
This brings the average inflation for the first nine months of the current financial year (FY25) to around 5.38%, which is a significant drop from the 27.06% recorded during the same period last year. The sharp decline indicates better economic stability and lower price increases compared to previous years.
However, some food items are expected to become more expensive. Prices of tomatoes, fruits, and chicken are likely to rise, contributing to a slight increase in food inflation. On the other hand, sectors like housing and transport may see minor price reductions, balancing the overall inflation rate.
Economists are now forecasting Pakistan’s overall inflation for FY25 to stay between 5% and 6%. This is a positive development for consumers, as slower price increases mean less financial strain on households. Additionally, the lower inflation rate may encourage economic growth and improve purchasing power.
The decline in inflation also reflects better fiscal management and improved supply chains. Policymakers will likely continue monitoring essential commodity prices to maintain stability. While challenges like rising food prices remain, the overall outlook for Pakistan’s economy is becoming more optimistic.
With inflation easing, businesses and consumers can expect more predictable prices, fostering confidence in the market. As Pakistan moves through the year, sustaining these lower inflation rates will be crucial for long-term economic progress.
