ISLAMABAD: The sharp decline in inflation is credited to exchange rate stability, prudent fiscal policies, and improved supply chain management for essential goods.
Strict measures against illegal foreign exchange firms, smuggling, and hoarding have played a key role in stabilizing the exchange rate, restoring market confidence, and ensuring a steady supply of commodities.
Key Inflation Trends
- Inflation during July–December FY2025 fell to 7.2%, a significant drop from 28.8% in the same period last year, according to an official press release.
- In December 2025, inflation stood at 4.1%, marking the lowest level in 80 months since April 2018, when it was 3.96%.
- The Sensitive Price Index (SPI), tracking 51 essential items, has consistently declined over the past four weeks of January 2025.
- For the week ending January 23, 2025, the SPI recorded a 0.77% decrease, reflecting continued price stability.
Price Trends & Government Interventions
During this period:
- 12 items saw price declines, 14 increased, and 25 remained stable, reflecting an overall downward trend.
- In response to rising pulses and chicken prices in early November, the Economic Coordination Committee (ECC) intervened, leading to:
- Gram pulse prices falling by Rs52.5 per kg (from Rs411.3 to Rs358.8).
- Mash pulse dropping by Rs37.4 per kg (from Rs528.3 to Rs490.9).
- Chicken prices declining by Rs20.1 per kg (from Rs460.6 to Rs440.5).
- 20kg wheat flour bag plummeting Rs1022.2, from Rs2816.5 to Rs1794.3.
- Over the last four weeks, prices of tomatoes, potatoes, pulses, eggs, and LPG have also seen notable reductions.
The continued decline in inflation and improved price stability reflect effective policy measures aimed at strengthening the economy and ensuring affordability for consumers.
