Islamabad, June 23, 2025: Pakistan average inflation rate is estimated to decline significantly to 4.51 percent during the fiscal year 2024-25, compared to 23.41 percent in FY24. This would represent the lowest inflation digit since FY16, when it was recorded at 2.9 percent.
As per Arif Habib Limited, this decrease is largely because of the high base effect, decreased food prices, and lower transportation charges following lower petroleum rates.
Still, core inflation, tracked through Non-Food Non-Energy (NFNE) inflation is expected to stand at 9.73 percent in FY25, down from 18.8 percent in FY24, reflecting continued underlying cost pressures.
READ MORE: Inflation in Pakistan May Touch 4% in June 2025
Looking ahead to FY26, inflation is predicted to stay within the State Bank of Pakistan’s desired range of 5 to 7 percent, with present estimates placing it at 6.6 percent.
READ MORE: Pakistan’s Yearly Inflation Rate Hits 3.5% in May 2025
Major threats to the inflation calculation include international political tensions, changes in global commodity costs, currency exchange rate variability, and escalating import expenses.
