Pakistan’s inflation rate has continued to drop hitting a 9-year record low of 1.51% year-on-year (YoY) in February 2025. This is a significant decline from 23.1% in the same month a year ago. Analysts have indicated that this is an indication of disinflation where the inflation rate decreases as opposed to deflation where prices actually decrease.
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Inflation on terms fell by 0.8%, as revealed by the Pakistan Bureau of Statistics (PBS).
The fall in inflation has been viewed positively by Pakistan Prime Minister Shehbaz Sharif who was pleased with the record low.
Attaullah Tarar, the Information Minister said the government is interested in lowering inflation further and is set to evaluate the progress soon. Although there has been some improvement recently, there are still fears of the prices of necessities especially in food and non-food items rising in urban and rural regions but hopes for a better future in Pakistan are growing.
