Pakistan’s headline inflation rises to 4.1% in July 2025

Inflation Pakistan

Islamabad, August 1, 2025 — Pakistan’s headline inflation rose to 4.1% in July 2025, according to fresh data from the Pakistan Bureau of Statistics (PBS).

This marks a noticeable increase from 3.2% in June 2025 and a sharp drop from 11.1% recorded in July 2024.

The increase in inflation is measured through the Consumer Price Index (CPI), which tracks the prices of essential goods and services.

On a monthly basis, general inflation jumped by 2.9% in July 2025, significantly higher than the 0.2% rise in the previous month. In comparison, inflation was up by 2.1% in July 2024.

Urban and Rural Breakdown

In urban areas, annual inflation hit 4.4% in July 2025, up from 3.0% in June but far lower than 13.2% in July 2024. Monthly urban inflation rose by 3.4% this July.

Rural inflation stood at 3.5% on a yearly basis, slightly lower than June’s 3.6%, and well below the 8.1% recorded in July 2024. On a month-to-month basis, rural inflation increased by 2.2%.

SPI and WPI Trends

The Sensitive Price Indicator (SPI), which reflects the cost of frequently used items, showed a decrease of 0.9% year-on-year in July 2025, better than the 1.9% drop in June and a vast improvement from a 15.7% increase in July 2024. However, SPI rose by 3.1% month-on-month in July.

The Wholesale Price Index (WPI), which tracks prices at the wholesale level, decreased by 0.5% year-on-year in July 2025, compared to a 0.6% increase in June and a 10.4% rise in July 2024. Monthly wholesale inflation rose by 1.2%.

Core Inflation

Core inflation, which excludes food and energy, also edged up. In urban areas, non-food non-energy inflation was 7.0% in July 2025, up from 6.9% in June but down from 11.7% in July 2024. In rural areas, core inflation was 8.1%, slightly down from 8.6% a month earlier.

Trimmed core inflation, which filters out extreme price changes, was 5.1% in urban areas and 4.9% in rural areas in July 2025.

Overall, the data reflects a mixed picture, with inflation pressures rising again in July, but still much lower than the levels seen during the same month last year.