Inflation Climbs to 3.5% in May 2025

According to the Pakistan Bureau of Statistics (PBS), the Consumer Price Index (CPI)-based inflation rate reached 3.5 percent year-on-year in May 2025, a notable increase from the 0.3 percent recorded in the prior month. This figure is also significantly lower than the 11.8 percent observed in May 2024.

The average CPI for the initial ten months (July-May) of the fiscal year 2024-25 stood at 4.61 percent, contrasting sharply with the 24.52 percent recorded during the corresponding period last year.

On a month-on-month basis, there was a decrease of 0.2 percent in May 2025, compared to a 0.8 percent decrease in the preceding month and a 3.2 percent decrease in May 2024.

Urban and Rural CPI Inflation

Urban CPI inflation rose to 3.5 percent year-on-year in May 2025, up from 0.5 percent in the previous month and 14.3 percent in May 2024. Month-on-month, it edged up to 0.1 percent in May 2025, compared to a 0.7 percent decrease in the prior month and a 2.8 percent decrease in May 2024.

Rural CPI inflation saw an increase of 3.4 percent year-on-year in May 2025, contrasting with a 0.1 percent decrease in the previous month and an 8.2 percent increase in May 2024. Month-on-month, it declined by 0.5 percent in May 2025, compared to a 1.0 percent decrease in the preceding month and a 3.9 percent decrease in May 2024.

Sensitive and Wholesale Price Indices

The Sensitive Price Index (SPI) inflation decreased by 0.6 percent year-on-year in May 2025, compared to a 3.6 percent decrease a month earlier and 15.3 percent in May 2024. On a month-on-month basis, it fell by 1.0 percent in May 2025, compared to a 2.1 percent decrease the previous month and a 4.0 percent decrease in May 2024.

The Wholesale Price Index (WPI) inflation increased to 0.4 percent year-on-year in May 2025, compared to a 2.2 percent decrease in the previous month and 9.9 percent in May 2024. Month-on-month, there was no change recorded in May 2025, compared to a 1.3 percent decrease in the previous month and a 2.5 percent decrease in May 2024.

Non-Food Non-Energy Inflation

Non-food non-energy urban inflation slightly decreased to 7.3 percent year-on-year in May 2025, compared to 7.4 percent the previous month and an increase of 12.3 percent in May 2024. Month-on-month, it decreased by 0.4 percent in May 2025, compared to 1.3 percent in the prior month and an increase of 0.4 percent in May 2024.

Non-food non-energy rural inflation decreased to 8.8 percent year-on-year in May 2025, compared to 9.0 percent the previous month and an increase of 17.0 percent in May 2024. Month-on-month, it decreased to 0.4 percent in May 2025, compared to an increase of 0.9 percent the previous month and an increase of 0.5 percent in May 2024.

Trimmed Mean Inflation

The 20 percent weighted trimmed mean urban inflation increased by 4.9 percent year-on-year in May 2025, compared to 3.8 percent the previous month and 11.0 percent in May 2024. Month-on-month, it increased by 0.1 percent in May 2025, compared to an increase of 0.3 percent the previous month and a decrease of 0.5 percent in May 2024.

The 20 percent weighted trimmed mean rural inflation increased by 4.7 percent year-on-year in May 2025, compared to 3.3 percent the previous month and 10.6 percent in May 2024. Month-on-month, it decreased by 0.2 percent in May 2025, compared to a decrease of 0.1 percent in the prior month and a decrease of 0.9 percent in May 2024.