Pakistan’s Consumer Price Index (CPI) recorded a year-on-year increase of 3.46% in May 2025, according to data released by the Pakistan Bureau of Statistics (PBS) on Monday. However, on a monthly basis, the CPI registered a slight decline of 0.17% compared to April 2025.
The CPI, calculated using the 2015–16 base year, incorporates both urban and rural price movements. In May, urban inflation edged up by 0.07% month-on-month, while rural inflation decreased by 0.53%.
From July 2024 to May 2025, the average inflation rate stood at 4.61%, down from the same period in the previous fiscal year.
The slight national decline was primarily attributed to decreases in housing costs and prices of perishable food items. Urban areas experienced a modest rise in inflation, driven by notable increases in food essentials such as eggs (+24.38%) and chicken (+8.63%), while prices of tomatoes (-20.80%) and onions (-12.05%) saw significant drops.
Rural areas experienced a broader decline due to a significant drop in food prices, including tomatoes (-32.99%), onions (-18.37%), and wheat flour (-10.52%). Nonetheless, rural areas reported price increases in eggs (+19.27%) and fresh fruits (+5.07%).
Non-food price changes included higher costs for cotton cloth (+3.20%) and motor vehicles (+1.86%) in urban regions, while electricity charges (-7.03%) and motor fuels (-0.67%) dropped. In rural areas, dental services (+5.97%) and education (+1.59%) were among the most notable increases.
On a year-over-year basis, urban inflation was up 3.51%, and rural inflation increased 3.39%.
Food and non-alcoholic beverages rose 3.07% nationally, with non-perishable food prices up 5.01%, while perishable food items dropped 9.21%. Alcoholic beverages and tobacco saw a 7.86% annual increase, and clothing and footwear surged 9.66%.
The most significant annual price increases were recorded in clothing, tobacco, and non-perishable food items. Meanwhile, perishable goods like vegetables and fruits experienced year-on-year price declines.
The PBS compiles the CPI using data from 35 cities and 27 rural centres, tracking a total of 600 consumer items. The data provides a key indicator of cost-of-living trends that influence monetary policy and economic planning.
Source: Express Tribune
