Pakistan Inflation Forecasts Show Slight Uptick Amid Declining Trend

Karachi: Inflation in Pakistan is forecasted to reach 3.4 percent year-over-year in May 2025, according to a report by AKD Securities Limited. This marks an increase from April’s record low of 0.3 percent year-over-year. The rise is attributed to increased price levels in most sectors, excluding housing and transport.

The report also indicates a decline in inflation by 0.3 percent month-over-month for May 2025, representing the second consecutive monthly decrease. This trend suggests a continued easing of inflationary pressures in the near term.

AKD Securities Limited has adjusted its annual inflation forecast for the fiscal year 2025 to 4.6 percent year-over-year. It anticipates that inflation over the next 12 months will remain at the lower end of the State Bank of Pakistan’s target range, providing some relief to consumers and policymakers alike.

The report’s findings offer a cautious optimism for Pakistan’s economic outlook, as efforts to stabilize prices appear to be gaining traction.