Pakistan’s inflation rate is predicted to fall further in April 2025, dropping below 0.5%, according to a report by Topline Securities. This follows a 59-year low of 0.7% year-on-year (YoY) inflation recorded in March 2025, down from 1.5% in February.
The decline is attributed to falling food and electricity prices. Food prices are expected to drop by 3.32% month-on-month (MoM) due to significant decreases in the cost of fruits, vegetables, and eggs. Meanwhile, electricity prices are projected to decline by 6.8%, contributing to lower overall inflation.
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If inflation remains between 0.05% and 0.5% in April, the average inflation for the first 10 months of FY25 will stand at 4.87%, a sharp drop from 26.22% in the same period last year.
Pakistan had faced record-high inflation of 38% in May 2023, the highest since 1965. However, recent adjustments in fuel and electricity tariffs, along with lower food prices, have helped stabilize prices.
Topline Securities has revised its FY25 inflation forecast downward to 4.5%-5.5%, citing declining energy and food costs. More details will be shared in their upcoming quarterly economic report.
