Pakistan’s Consumer Price Index (CPI) inflation dropped to 0.7% year-on-year in March 2025, marking its lowest level in over three decades, according to the Pakistan Bureau of Statistics (PBS). This represents a significant decline from 1.5% in February 2025 and 20.7% in March 2024.

Topline Securities confirmed this is the lowest inflation rate Pakistan has experienced in more than 30 years. The first nine months of FY25 saw average inflation of 5.25%, compared to 27.06% during the same period last fiscal year.

Urban areas recorded 1.2% inflation (down from 1.8% in February), while rural areas showed no change year-on-year. The Sensitive Price Index (SPI) fell to negative 2.3%, and Wholesale Price Index (WPI) decreased by 1.6%.

Core inflation, which excludes volatile food and energy prices, showed mixed trends. In urban areas, it increased to 8.2% year-on-year, while rural core inflation decreased to 10.2%.

The trimmed mean measure of core inflation stood at 4.8% for both urban and rural areas, showing a significant improvement from March 2024’s figures of 14.8% and 18.4% respectively.