Pakistan, June 2 -- ISLAMABAD - Pakistan's headline inflation jumped to 3.5% year-on-year in May 2025, according to fresh data from the Pakistan Bureau of Statistics (PBS). This increase was higher than the government's projection of 1.5% to 2% for the month.

Although inflation slightly eased by 0.2% on a month-on-month basis, this decline follows a 0.8% drop in April, and yearly inflation pressures remain firm, especially due to rising food and tax-related costs. Analysts had warned that inflation could spike closer to 4% by June, which now seems likely.

In urban areas, food items saw significant jumps. The price of chicken rose by 52%, moong pulse by 31%, and fresh fruits by 29.5%. Non-food items also added pressure, with a massive 16...