Pakistan’s Inflation surge to 3.5% in May 2025

In May 2025, Pakistan’s annual inflation rate rose to 3.5% compared to just 0.3% in April 2025 and 11.8% in May last year, according to the Pakistan Bureau of Statistics. On a monthly basis, inflation slightly dropped by 0.2% in May, following a 0.8% drop in April and a 3.2% drop in May 2024.

For the first 11 months of the current fiscal year, average inflation stood at 4.61%, a big drop from 24.52% during the same period last year.

In urban areas, yearly inflation in May was 3.5%, up from 0.5% in April and down from 14.3% in May 2024. Monthly inflation in cities showed a slight increase of 0.1% in May, after falling 0.7% in April and 2.8% in the same month last year.

In rural areas, yearly inflation reached 3.4% in May, compared to a 0.1% drop in April and 8.2% in May 2024. On a monthly basis, inflation in rural areas fell by 0.5% in May, after dropping 1.0% in April and 3.9% in May last year.

The Sensitive Price Index (SPI), which tracks essential goods, showed a 0.6% decline in May compared to a 3.6% drop in April and a 15.3% drop in May 2024. On a month-to-month basis, SPI was down 1.0% in May, after falling 2.1% in April and 4.0% in May last year.

Wholesale Price Index (WPI) inflation increased slightly to 0.4% year-on-year in May, compared to a 2.2% drop in April and 9.9% in May 2024. On a monthly basis, there was no change in WPI for May, after a 1.3% decrease in April and a 2.5% drop in May last year.