Inflation Falls to 3% in August 2025

Islamabad, September 1, 2025, 09:12 PM PKT — Pakistan’s headline inflation has plunged to 3% year-on-year in August 2025, down from 4.1% in July 2025, as Pakistan Bureau of Statistics (PBS) data revealed on Monday, signaling a sharp economic shift. Month-on-month, inflation dropped 0.6%, reversing a 2.9% rise in July and a 0.4% increase in August 2024, with the Consumer Price Index (CPI) average for July-August FY25 at 3.53%, a stark drop from 10.36% in FY24. The Finance Ministry had forecasted a 4-5% range, while brokerage firms like Insight Securities predicted 4.1%.

Urban CPI inflation eased to 3.4% year-on-year from 4.4% in July and 11.7% in August 2024, with a 0.7% monthly decline versus a 3.4% rise in July and 0.3% in August 2024. Rural CPI inflation fell to 2.4% year-on-year from 3.5% in July and 6.7% in August 2024, with a 0.5% monthly drop against a 2.2% increase in July and 0.6% in August 2024. This inflation moderation stems from lower electricity charges and falling LPG prices, despite rising food costs. Web context on inflation trends shows past volatility, while posts found on X reflect relief mixed with caution—some cheer decline, others question sustainability. Critically, the narrative of “economic relief” may mask underlying pressures—web data hints at structural issues, and X sentiment suggests distrust in lasting stability, pointing to potential risks.