Pakistan’s inflation is projected to drop below 0.5% in April 2025, marking the lowest rate in six decades. The Consumer Price Index (CPI) for this month is expected to range from 0.05% to 0.5% year-on-year (YoY). Additionally, the average inflation rate for the first ten months of fiscal year 2024-25 could settle at 4.87%, a significant decline from 26.22% in the previous year. According to a report by Topline Securities, the decrease in food and electricity prices largely contributes to this sharp decline in inflation. For April, food inflation is anticipated to decrease by 3.32% month-on-month (MoM), driven by a notable 25% drop in fresh fruit prices. Onions and tomatoes are also expected to see significant price reductions of 21% and 19%, respectively. Furthermore, housing, water, electricity, and gas prices could fall by 0.02% MoM. This decline is attributed to a 6.8% drop in electricity costs and a 0.5% decrease in solid fuel prices. Nevertheless, rising rents might offset some of these decreases. The transportation sector is also expected to see a slight decline of 0.12% MoM, thanks to a 0.4% fall in fuel prices. With inflationary pressures easing, Topline Securities has revised its fiscal year 2024-25 forecast. They now estimate inflation will be between 4.5% and 5.5%, down from the previous range of 5-6%. However, risks still exist. Fluctuating commodity prices, especially oil, could change the inflation trend in the future.