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Inflation Hits 3.5% in May 2025, Surpasses Government Expectations
Headline inflation rose to 3.5% YoY in May 2025, exceeding expectations. Food, transport, and utility prices surged, with chicken up over 50% in urban areas.
ND
by News Desk
2025-06-02
Inflation Hits 3.5% in May 2025, Surpasses Government Expectations

Headline inflation climbed to 3.5% year-on-year (YoY) in May 2025, according to figures released by the Pakistan Bureau of Statistics (PBS) on Monday. This figure came in higher than the Ministry of Finance’s anticipated range of 1.5% to 2.0% for the month, reflecting an uptick in food and non-food prices across both urban and rural regions.

Month-on-month (MoM), inflation registered a marginal decline of 0.2%, compared to a sharper decrease of 0.8% in April. However, the finance ministry had already signaled a cautious outlook, warning of a possible inflationary rise to 3.0-4.0% by June amid subdued growth in Large-Scale Manufacturing (LSM).

A breakdown of the data shows significant price increases in essential items, particularly food. In urban areas, chicken prices soared by 51.96%, while prices for moong pulse, fresh fruits, butter, and powdered milk rose by more than 20%. Other notable increases included sugar (21.71%), honey (21.23%), and condiments and spices (19.98%).

Non-food urban price hikes were also stark, with motor vehicle taxes up by 168.79%, personal effects by 33.24%, and electrical appliances by 17.63%. In rural regions, chicken prices jumped 46.05%, moong pulse 31.39%, and powdered milk 25.13%. On the non-food side, personal effects rose 37.47% and dental services by 24.74%.

On a monthly basis, urban food items such as eggs (24.38%), chicken (8.63%), and sugar (4.07%) led the increase. In rural areas, eggs rose 19.27% and fresh fruits 5.07%. Non-food categories such as dental services and personal effects also saw notable rises.

According to a report by Topline Securities, average inflation during the first 11 months of FY2024-25 stood at 4.61%, significantly down from 24.52% during the same period last year — a notable shift indicating relative stabilization but also reflective of a low-base effect.

The latest figures underscore persistent inflationary pressures despite monetary tightening and reduced demand, indicating that food supply chain challenges and administered price hikes continue to weigh on household budgets.

 
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inflation

CPI

PBS

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