Islamabad, September 1, 2025 – The Pakistan Bureau of Statistics (PBS) reported on Monday that the country’s headline inflation, measured through the Consumer Price Index (CPI), rose by 3% year-on-year in August 2025.
This increase reflects ongoing price adjustments in essential commodities, though the pace of inflation was slightly lower compared to previous months.
According to PBS data, CPI-based general inflation registered a 3% annual rise in August 2025, down from 4.1% in July 2025 and significantly lower than the 9.6% recorded in August 2024. On a month-to-month basis, inflation contracted by 0.6% compared to a sharp increase of 2.9% last month, signaling a partial cooling in price pressures.
Urban and Rural Inflation Trends
Urban inflation showed a year-on-year increase of 3.4% in August 2025, compared to 4.4% a month earlier and a double-digit figure of 11.7% in the same month last year. Month-on-month, urban prices fell by 0.7%, contrasting with a sharp increase of 3.4% in July.
Rural inflation remained relatively subdued, increasing by 2.4% on an annual basis versus 3.5% in July and 6.7% in August 2024. However, on a monthly scale, rural inflation fell by 0.5%, compared to a rise of 2.2% in the prior month.
SPI and WPI Trends
The Sensitive Price Indicator (SPI), which tracks essential commodities, recorded a year-on-year increase of 2.6% in August 2025, reversing a 0.9% decline in July. On a monthly basis, SPI surged by 3.2%, up slightly from 3.1% last month.
Wholesale Price Index (WPI) inflation showed a year-on-year decline of 1.0% in August 2025, compared to a 0.5% drop in July. On a monthly basis, WPI eased by 0.2%, indicating some relief in wholesale commodity markets.
Core Inflation
Core inflation, which excludes volatile food and energy prices, remained elevated despite a slowdown. In urban areas, core inflation stood at 6.9% year-on-year, while rural regions recorded 7.8%. On a monthly basis, increases were limited to 0.3% and 0.2% respectively.
Trimmed core inflation, calculated using a 20% weighted mean, stood at 4.2% in urban areas and 3.6% in rural regions on a year-on-year basis, reflecting a broader decline compared to last year’s figures.
Economic Outlook
Economic analysts note that while August’s inflation data indicates a moderation compared to last year, rising global oil prices and currency depreciation could keep inflationary pressures alive in the coming months. Policymakers are expected to review fiscal and monetary strategies to contain potential price shocks as Pakistan enters the final quarter of 2025.