ISLAMABAD: The Consumer Price Index (CPI) inflation rate fell in Pakistan to 1.5 per cent on a year-on-year basis in February, down from 2.4 per cent in January, marking a significant easing in consumer prices compared to the same period last year.
According to the data released by the Pakistan Bureau of Statistic (PBS) on Monday, prices slipped by 0.8 per cent in February following a slight increase of 0.2 per cent in January.
The report said that urban inflation mirrored the overall trend, with the CPI for cities decreasing to 1.8 per cent in February 2025, compared to 2.7 per cent in January and 24.9 per cent in the same period last year. Month-on-month urban prices dropped by 0.7 per cent, reversing the 0.2 per cent increase observed a month earlier.
According to the PBS data, rural areas experienced a similar decline, with year-on-year rural inflation falling to 1.1 per cent from 1.9 per cent in January and 20.5 per cent in February 2024.
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Similarly, month-on-month rural prices saw a sharper drop of 1.1 per cent in February, compared to a 0.2 per cent rise the month before and a 0.3 per cent decrease in the same month last year.
The Sensitive Price Index (SPI), which tracks the cost of essential goods, fell to 0.2 per cent year-on-year in February, down from 0.7 per cent a month earlier and 30.4 per cent in February 2024. Every month, the SPI decreased by 1.6 per cent, following a 1.4 per cent drop in January.
The Wholesale Price Index (WPI) also reflected easing inflationary pressures, recording a year-on-year decrease to 0.7 per cent in February 2025 from 0.6 per cent the previous month. In contrast, the WPI had surged by 18.7 per cent in February 2024. Month-on-month wholesale prices edged down by 0.2 per cent, reversing a 0.2 per cent increase in January.
The PBS data underscored a remarkable cooling of inflation across urban and rural areas, a stark contrast to the double-digit rates that gripped the nation last year. Analysts attributed the decline to stabilizing global commodity prices, improved domestic supply chains, and monetary policy measures aimed at controlling inflation.
Despite the easing inflation, economists caution that sustained recovery will depend on continued policy efforts and global economic conditions. “The drop in inflation is encouraging, but it remains to be seen if this trend will hold amid external pressures and domestic challenges,” said a senior economist at a Karachi-based think tank.