For the first time in nearly seven years, short-term inflation in Pakistan has decreased. According to the Pakistan Bureau of Statistics (PBS), the Sensitive Price Index (SPI) for the week ending March 6, 2025, recorded a 0.87% drop compared to the same week last year.
The main reason for this decline is the reduction in prices of essential items like onions, tomatoes, wheat flour, and fuel. These lower costs have helped ease inflation, giving some relief to consumers. However, not all prices have gone down. Some products, including ladies’ sandals, bananas, and powdered milk, have become more expensive.
Despite this drop in overall inflation, the price trends remain mixed. Around 25.49% of the tracked items saw price increases, 39.22% recorded declines, and 35.29% remained unchanged. This means that while many essential goods are now more affordable, some items still cost more than before.
The decline in inflation is a positive sign for the economy, as rising costs over the past years have put pressure on household budgets. Lower prices of basic necessities, especially food and fuel, may provide some financial relief to families. However, price increases in certain categories show that inflation is not entirely under control.
Experts suggest that continued monitoring of inflation trends is important. If essential goods continue to become cheaper, it could help stabilize the economy and improve purchasing power. However, if certain product prices keep rising, the impact of this decline may not be felt equally by everyone.
