Pakistan inflation rises to 4.1% year-on-year (YoY) in July 2025, compared to 3.2% in June, according to new data released by the Pakistan Bureau of Statistics (PBS). The month-on-month (MoM) increase stood at 2.9%, a sharp jump from just 0.2% in June 2025.
Details as Pakistan Inflation Rises
In comparison, inflation in July 2024 was 11.09% YoY and 2.1% MoM, signaling a major easing in price pressures over the year.
Urban inflation hit 4.4% YoY (up from 3.0% in June) and 3.4% MoM, while rural inflation stood at 3.5% YoY, slightly down from 3.6% in June, with a 2.2% MoM rise.
The numbers are within the Finance Ministry’s July projection of 3.5–4.5%, reflecting stable prices and improved supply chains. The ministry expects continued economic recovery in early FY2026, backed by a stronger macroeconomic outlook and investor confidence.
However, analyst forecasts missed the mark — Ismail Iqbal Securities had projected July inflation to drop to 3.1%, citing continued disinflation.
The CPI’s recent spike is attributed partly to rising food prices, including a 24.38% increase in egg prices and 8.63% in chicken, which many users highlighted in reactions on social media.
Still, inflation remains far below the record high of 38% in May 2023, and the average CPI inflation for FY2025 so far is just 4.49%, compared to 23.41% last year — a sign that Pakistan’s inflation crisis may finally be cooling.
That said, analysts warn of potential future inflation risks, especially due to monsoon-related supply disruptions and waning base effects.
Published in SouthAsianDesk, August 1st, 2025
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