Pakistan’s inflation rate in February 2025 dropped by 0.83% to 1.52%, falling below government estimates of 2 to 3%, marking the lowest level in nine and a half years.

A Pakistan Bureau of Statistics report reveals that urban inflation stood at 1.8%, while rural inflation was 1.1%. From July 2024 to February 2025, the average inflation rate remained at 5.85%.

Prices of essential goods fluctuate

The report highlighted that prices of several essential commodities decreased, including:
✅ Tomatoes (-57%)
✅ Onions (-32%)
✅ Potatoes (-20%)
✅ Vegetables (-17%)
✅ Eggs (-14%)
✅ Daal channa and tea became cheap by 10%, gram flour 9%, wheat 3%, daal maash 2.82% and flour 2.23%. Chicken, lentils, fish, dairy products, fuel, transport, construction materials, electricity, stationery also became cheaper.

However, some commodities saw price hikes:
❌ Fruits (+15%)
❌ Sugar (+9.35%)
❌ Butter (+5.61%)
❌ Spices (+1.59%)
❌ Bakery items (+1.19%)
Additionally, edible oil, ghee, meat, rice, and dry milk also saw an increase.

According to the report, clothes and shoes became expensive by 13.80% in a year, health facilities by 14.34% and educational facilities by 10.87%. On an annual basis, the prices of food and beverages decreased by 4.15%. Perishable goods became cheaper by 20.30%.

PM Shehbaz Sharif hails economic progress

Prime Minister Shehbaz Sharif welcomed the decline in inflation, attributing it to the government’s strong economic policies. He expressed satisfaction that inflation had dropped to 1.52% as his government neared completion of its first year in office.

Shehbaz stated that all institutions are working together to boost investment and economic growth. He assured that stabilizing prices and providing essential commodities at affordable rates remains a top priority for his administration.

With continued macroeconomic stability, the PM expressed hope for further reductions in inflation, promising sustained relief to the people.