ISLAMABAD: Pakistan’s annual inflation rate fell more sharply than forecast in February, dropping to 1.52% – significantly below government projections of 2-3% – according to official data released on Monday.
Pakistan Bureau of Statistics (PBS) revealed the lowest Consumer Price Index (CPI) reading since September 2015.
In February 2025, the headline inflation recorded a month-on-month decline of 0.9% contrary to a 0.2 per cent increase in January and no change recorded in February 2024.
The average inflation rate for the first eight months (July-February) of this fiscal year (8MFY25) stood at 5.85 per cent, marking a significant decrease from the 27.96 per cent recorded during the same period last year.
Breaking down the figures further, inflation in urban areas fell to 1.8 per cent in February, while in rural areas, it was 1.1 per cent for the same month.
Pakistan, currently supported by a $7 billion facility from the International Monetary Fund (IMF) granted in September, is in the midst of an economic recovery. Authorities have attributed the decline in inflation to economic stabilization under the IMF program.
In its monthly economic outlook report released last week, the finance ministry stated that inflation in February would hover between 2.0-3.0 per cent, continuing its downward trend from the last year.
PM expresses satisfaction
Meanwhile, Prime Minister Muhammad Shehbaz Sharif Monday expressed satisfaction at the continuous decrease in inflation related to a consumer price index.
In a statement, he said the present government was completing its one year and, on this occasion, it was very good news.
He added it was a matter of great satisfaction that the rate of inflation came to 1.5 percent in February 2025 which was the lowest rate of inflation after September 2015.
The rate of inflation from July 2024 to February 2025 was 5.9 per cent while in the last financial year during the same period, inflation was at 28 per cent, and this showed a remarkable decrease, he added.
The prime minister said due to the magnificent government’s economic team efforts the economic indicators were improving with every passing day.
