Islamabad, March 3, 2025: Pakistan’s inflation rate recorded a sharp decline in February 2025, falling to 1.5% year-on-year (YoY)—the lowest level since September 2015, according to data from the Pakistan Bureau of Statistics (PBS).
This marks a significant drop from January 2025’s inflation rate of 2.4%, reflecting a month-on-month decrease of 0.9%.
For the first eight months of the fiscal year 2024-25 (July to February), the average inflation rate stood at 5.85%, a sharp contrast to 27.96% recorded during the same period last year.
During February, urban inflation fell to 1.8% while rural inflation declined to 1.1%.
The South Asian country, currently benefiting from a $7 billion loan facility from the International Monetary Fund (IMF) since September 2024, is navigating a period of economic recovery. Authorities have credited the declining inflation trend to stabilization measures under the IMF program.
Last week, the Finance Ministry, in its monthly economic outlook report, had projected inflation to stabilize in February between 2.0% – 3.0%, with a slight increase expected to 3.0% – 4.0% by March 2025.
Economists attribute this record-low inflation largely to the favorable base effect from last year’s high inflation.
