Inflation Hits Lowest Level in Three Years

Pakistan’s inflation rate fell sharply to 3.9% in October 2025, marking the lowest level recorded in more than three years. The decline reflects easing food and energy prices, offering some relief to households and businesses struggling with high costs in recent years.

According to data released by the Pakistan Bureau of Statistics (PBS), the Consumer Price Index (CPI) showed a significant drop compared to the previous month. Analysts attribute this decline to improved supply chains, stable fuel prices, and better availability of essential commodities.

Food inflation, which has been a major driver of rising costs, saw a notable slowdown. Prices of vegetables, pulses, and edible oil registered declines, while energy tariffs remained stable, reducing pressure on household budgets.

Economists believe the easing inflation could help the government in its broader economic stabilization efforts. Lower inflation often boosts consumer confidence, encourages spending, and supports growth in key sectors.

However, experts caution that the trend may be temporary if global oil prices rise or if domestic supply disruptions occur. They emphasize the need for sustainable reforms in agriculture, energy, and trade policies to ensure long-term price stability.

The October figures also provide some breathing space for the State Bank of Pakistan, which has been maintaining tight monetary policies to control inflation. With CPI easing, there may be room for adjustments in interest rates to stimulate investment and growth.

For ordinary citizens, the decline in inflation is a welcome development, especially after years of double-digit increases. Many hope that the trend continues, bringing lasting relief to households across the country.