Inflation hits nearly decade-low at 1.5%

As per data from PBS, significant drop in inflation was recorded in February, marking lowest rate since September 2015

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In February 2025, Pakistan's inflation saw a notable decrease, dropping to 1.5% year-on-year (YoY), the lowest rate since September 2015, as per data from the Pakistan Bureau of Statistics (PBS).

The decline comes as the country navigates economic recovery under a $7 billion International Monetary Fund (IMF) programme.

The February rate was lower than the finance ministry's forecast of 2-3% and a sharp drop from the 2.4% recorded in January.

Urban inflation stood at 1.8%, while rural areas registered 1.1%. The cumulative average inflation rate for the first eight months of the fiscal year (July-February) reached 5.85%, significantly down from 27.96% in the same period last year.

"The favourable base effect from last year's high inflation contributed to this result," said Waqas Ghani, head of research at JS Global. He warned that food inflation could rise during Ramadan, despite the downward trend. 

The IMF-backed stabilisation programme and easing global commodity prices have been credited for the decline. However, authorities expect a slight inflation increase to 3-4% by March.

In another development, Punjab Chief Minister Maryam Nawaz Sharif ordered an effective and comprehensive crackdown to curb inflation across the province.

The chief minister directed all commissioners and deputy commissioners to launch an effective campaign against price gouging and instructed them to prominently display the official price lists.

Maryam Nawaz also ordered strict monitoring of the supply and demand of essential food items and instructed action to prevent hoarding.

She instructed the Punjab Chief Secretary to personally supervise the campaign against price gouging and hoarding, to present daily comprehensive reports on prices, and to ensure the quality and rates of food items.