In a marked shift from the inflationary turbulence of the past two years, Pakistan recorded a sharp decline in consumer price growth in April 2025. According to the Pakistan Bureau of Statistics (PBS), national CPI inflation slowed to just 0.3% year-on-year (YoY) — down significantly from 17.3% in April 2024 and 0.7% last month. On a month-on-month (MoM) basis, inflation turned negative, clocking in at −0.8%, led primarily by falling food and energy costs.
Urban and rural areas saw similar trends but with notable contrasts. Urban inflation stood at 0.5% YoY, while rural inflation dipped into negative territory at −0.1% YoY. The rural CPI also fell more sharply on a monthly basis, down 1.0%, compared to a 0.7% decline in urban prices.
One of the clearest drivers behind this cooling was the food segment. In urban areas, prices for perishable food items dropped 24.2% YoY, with onions, tomatoes, and eggs among the steepest fallers. Wheat prices fell 36% in cities, while in rural regions, the decline was nearly as sharp at 34.2%. Electricity charges also dropped substantially, falling 15.18% month-on-month, further easing pressure on household budgets.
Yet, this relief comes with caveats. Core inflation, which excludes food and energy, remains sticky. Urban NFNE (non-food non-energy) inflation was 7.4% YoY, while rural NFNE clocked in at 9.0%, suggesting underlying costs continue to rise. Similarly, trimmed mean inflation held at 3.8% urban and 3.3% rural, reflecting persistent upward price movement in essential non-volatile goods.
Other key indices mirrored the national picture. The Sensitive Price Indicator (SPI), which reflects short-term price movements for lower-income households, declined 3.2% YoY. The Wholesale Price Index (WPI) also posted a 2.2% drop, indicating easing cost pressures for businesses.
While the April data presents a welcome reprieve from runaway inflation, policymakers must remain cautious. With core prices still elevated and global energy volatility lingering, the inflation slowdown may be temporary. For now, however, households across Pakistan are beginning to feel the first signs of relief.
