Islamabad, March 3, 2025 – Pakistan’s headline inflation, measured through the Consumer Price Index (CPI), recorded a decline to 1.5% on a year-on-year (YoY) basis in February 2025, compared to 2.4% in the previous month and a significantly higher 23.1% in February 2024. This decline in headline inflation suggests a notable easing in price pressures, reflecting improved economic stability.
On a month-on-month (MoM) basis, headline inflation showed a reduction of 0.8% in February 2025, contrasting with an increase of 0.2% in January 2025 and no change recorded in February 2024. This drop indicates a temporary respite in inflationary pressures, possibly influenced by stabilizing fuel prices and controlled food costs.
Urban and Rural Inflation Trends
CPI-based inflation in urban areas dropped to 1.8% YoY in February 2025, down from 2.7% in January and 24.9% in February 2024. On a MoM basis, urban inflation decreased by 0.7% in February 2025, compared to a 0.2% increase in January 2025 and February 2024. Similarly, rural inflation fell to 1.1% YoY in February 2025, compared to 1.9% in the previous month and 20.5% in February 2024. The MoM rural inflation declined by 1.1% in February 2025, compared to a 0.2% increase in the previous month and a 0.3% decrease in February 2024.
Inflation Indicators: SPI and WPI
The Sensitive Price Index (SPI) inflation witnessed a decline, falling to 0.2% YoY in February 2025 from 0.7% a month earlier and 30.4% in February 2024. On a MoM basis, SPI inflation dropped by 1.6% in February 2025, compared to a 1.4% decrease in the prior month and 0.8% in February 2024. Meanwhile, the Wholesale Price Index (WPI) inflation decreased to 0.7% YoY in February 2025, compared to 0.6% in January and a much higher 18.7% in February 2024.
Core Inflation Trends
Non-food, non-energy (NFNE) inflation in urban areas remained steady at 7.8% YoY in February 2025, unchanged from the previous month but lower than 15.5% in February 2024. In rural areas, core inflation stood at 10.4% YoY, unchanged from January but down from 21.9% in February 2024. The 20% weighted trimmed mean inflation in urban areas declined to 4.6% YoY, while in rural areas, it fell to 5.2% YoY.
This overall decline in headline inflation indicates progress in controlling price hikes, aligning with the government’s economic stabilization measures.