Pakistan, March 20 -- Pakistan's headline inflation is projected to drop to 0.5-1% in March 2025, marking the lowest year-on-year (YoY) rate in over three decades, according to Topline Securities. Inflation has steadily declined since hitting a record 38% in May 2023. In February 2025, CPI-based inflation stood at 1.5% YoY, the lowest in over nine years, per the Pakistan Bureau of Statistics (PBS).

Despite Ramadan-related food inflation rising by 2.5% month-on-month (MoM), housing, water, electricity, and gas prices are expected to decline by 0.35% MoM. Electricity costs may drop by 2.3% due to lower fuel cost adjustments. If the pending Quarterly Tariff Adjustment (QTA) of -Rs2/unit is approved on time, it could further reduce electrici...