Pakistan’s headline inflation slowed to 5.6% year-on-year in December 2025, according to Pakistan Bureau of Statistics (PBS). This reading aligns with the Finance Ministry’s projection of 5.5–6.5%. On a month-on-month basis, consumer prices decreased by 0.4%, showing a moderation in price growth.
The CPI was 6.1% in November 2025 and 4.1% in December 2024. Urban inflation rose 5.8% YoY, while rural inflation increased 5.4% YoY. Month-on-month, both urban and rural CPI recorded slight declines of 0.4% and 0.6%, respectively, signaling easing pressure on households.
In the first half of fiscal year 2026, average inflation stood at 5.15%, lower than 7.22% in the same period last year. The moderation reflects base effects and stable commodity prices, helping temper cost-of-living pressures across the country.
Brokerage houses had slightly higher expectations for December inflation. Topline Securities projected a YoY CPI of 5.75–6.25%, while JS Global estimated around 6%. Despite these predictions, actual readings indicate moderate price growth, in line with government forecasts.
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The Finance Ministry noted inflation is likely to remain within the 5.5–6.5% range for December 2025. Analysts expect this trend to support economic stability and provide some relief to urban and rural consumers alike.