Inflation May 2024: 3.5% Rise – Business News
Pakistan’s inflation surged to 3.5% in May 2025,exceeding forecasts,according to recent data. this marks a slight decrease of 0.2% from April, yet surpasses the finance ministry’s expectations, signaling potential economic challenges ahead. Food and non-food items experienced notable price hikes across both urban and rural sectors. Specifically, urban areas witnessed notable increases in the cost of chicken, pulse moong, and fresh fruits, alongside rises in motor vehicle tax. Rural regions mirrored these trends, with similar jumps in food prices and increased costs for non-food essentials. News Directory 3 provides the latest updates. Analyze the month-on-month fluctuations, revealing further shifts in the economic landscape. Discover what’s next for Pakistan’s economy.
Pakistan Inflation Rate Reaches 3.5% in May, Exceeding Forecasts
Updated June 02, 2025
Pakistan’s inflation rate climbed to 3.5% year-on-year in May 2025, according to the Pakistan Bureau of Statistics (PBS). The data, released Monday, showed a slight decrease of 0.2% compared to the previous month.
the May inflation figure surpassed the finance ministry’s projections, which had anticipated a rate between 1.5% and 2.0% for May, wiht a potential rise to 3.0%-4.0% by June. The ministry had previously expressed caution regarding growth in Large-Scale Manufacturing (LSM),forecasting an upward trend for inflation during May and june.
Topline Securities noted that the average inflation for the first 11 months of fiscal year 2025 stood at 4.61%, a significant drop compared to the 24.52% recorded during the same period last year.
Year-on-Year Price Changes
Significant year-on-year price increases were observed in both urban and rural areas.
In urban areas, food items like chicken (51.96%), pulse moong (31.13%), and fresh fruits (29.5%) saw significant price hikes. Non-food items such as motor vehicle tax (168.79%) and personal effects (33.24%) also experienced considerable increases.
Rural areas also saw food price increases, including chicken (46.05%), pulse moong (31.39%), and fresh fruits (31.13%). Non-food items with notable increases included motor vehicle tax (126.61%) and personal effects (37.47%).
Month-on-Month Price Changes
Month-on-month data revealed further price fluctuations.
Urban areas experienced increases in food items such as eggs (24.38%) and chicken (8.63%). Non-food items like cotton cloth (3.20%) and motor vehicles (1.86%) also saw price increases.
In rural areas, food items like eggs (19.27%) and fresh fruits (5.07%) increased in price.Non-food items with notable increases included dental services (5.97%) and personal effects (4.16%).
What’s next
The goverment will likely monitor these trends closely and adjust economic policies as needed to manage inflation and promote enduring growth.