Pakistan’s inflation showed signs of easing in August 2025, providing relief to consumers amid rising cost-of-living concerns. According to the Pakistan Bureau of Statistics (PBS), the country’s headline inflation declined to 3% year-on-year (YoY), down from 4.1% in July 2025. This reduction comes mainly due to falling prices of perishable food items and lower electricity costs.
On a month-on-month (MoM) basis, inflation decreased by 0.65%. Urban areas experienced a sharper drop of 0.73%, while rural inflation fell by 0.52%. The decline in perishable food prices, including fresh fruits, vegetables, and potatoes, was the key factor, whereas staples like rice, meat, and milk saw slight increases.
| Category | Change MoM (%) | Notes |
| Perishable Food Items | -12.07 | Fresh fruits, vegetables, and potatoes dropped |
| Non-Perishable Food Items | +0.57 | Rice, meat, and milk slightly increased |
| Electricity Charges | -6.87 | Lower utility costs contributed to the decline |
| Motor Fuel | -1.51 | Fuel prices eased |
| Education Costs | +1.28 | School/college fees increased |
| Health Services | +0.71 | Medical and health services rose |
Yearly, urban inflation rose by 3.38%, while rural inflation increased by 2.43%, keeping the overall CPI moderate. For the first two months of FY2025-26 (July-August), the average inflation rate stood at 3.53%, with urban areas at 3.90% and rural areas at 2.98%.
The easing of inflation is expected to provide temporary relief to households, especially for essential food and energy items, while policymakers continue monitoring non-food cost increases.