FX.co ★ Pakistan Inflation Rate Lowest Since 1968

In March 2025, Pakistan witnessed a continued easing in its annual inflation rate, which decreased for the fifth month in a row to 0.7%, down from the previous month's 1.5%, a low not seen since 2015. This reading is significant as it is the lowest since September 1968. Deflation became more pronounced in sectors such as food and non-alcoholic beverages, dropping to -5.1% from -4.2% in February, with a notable decrease in perishable food items, which plummeted by 30.2%. Deflation was also experienced in the transport sector, registering at -1.2% compared to -1.1%, and in housing and utilities, which fell to -2.2% from -0.6%. Furthermore, there was a deceleration in the prices of clothing and footwear (13.5% compared to 13.8%), as well as in furnishings and household equipment maintenance (3.7% from 4.5%), health services (13.8% from 14.3%), and recreation and culture (7.7% from 8.4%). On the other hand, prices increased in areas such as alcoholic beverages and tobacco (7.5% compared to 6.7%), education (11.9% from 10.9%), and miscellaneous goods and services (13.4% from 12.8%). On a monthly basis, consumer prices rose by 0.9% in March 2025, a recovery from the decline of 0.8% observed in the preceding month.