Published on, Sept. 1 -- September 1, 2025 4:54 PM

Pakistan's headline inflation dropped to 3% year-on-year (YoY) in August 2025. This is lower than July's 4.1%, according to Pakistan Bureau of Statistics (PBS). On a month-on-month basis, inflation decreased by 0.6% in August. This contrasts with a 2.9% increase the previous month and a 0.4% rise in August 2024. The average inflation for July-August FY25 was 3.53%, down from 10.36% last year.

The latest reading came as a surprise to many, including the government. The Finance Ministry had expected inflation to remain between 4% and 5% in August. Several brokerage houses also forecasted higher inflation rates. For example, Insight Securities projected a 4.1% YoY inflation. They noted foo...