Pakistan's Inflation Drops to Record Low 0.3% in April

Pakistan's headline inflation rate plunged to 0.3% year-on-year in April 2025, marking its lowest level since 1968 and continuing a six-month trend of easing price pressures. The steep deceleration was driven by broad-based declines across food, energy, transport, and housing categories, with perishable food items and electricity charges experiencing especially sharp drops. Urban and rural inflation rates also decreased, while the Sensitive Price Indicator and Wholesale Price Index both registered year-on-year declines, indicating persistent deflationary trends. Core inflation, though still elevated, continued to ease in both urban and rural areas. Despite these improvements, analysts caution that global trade disruptions may still pose risks to future price stability, prompting the central bank to remain vigilant. Overall, the data reflects a significant and broad cooling of inflation across Pakistan’s economy.