Pakistan’s Inflation Rate Predicted to Decrease Amid Economic Adjustments

Karachi: Pakistan’s Consumer Price Index (CPI) is projected to reach 3.1% in June 2025, indicating a shift toward normalized price trends as the base effect diminishes. This adjustment is expected to lead to an average inflation rate of 4.6% for the fiscal year 2025, a significant decrease from the previous year’s average of 23.9%.

The State Bank of Pakistan (SBP) recently decided to maintain its policy rate at 11%, following the Monetary Policy Committee (MPC) meeting earlier this week. The decision was influenced by growing concerns over rising imports and geopolitical tensions in the Middle East, which contribute to uncertainties in the commodity outlook and inflation.

The MPC’s decision to keep the policy rate unchanged is aimed at supporting macroeconomic stability and price stability, particularly in consideration of the fiscal year 2026 budget proposals. These proposals have the potential to widen the trade deficit, necessitating careful economic measures.

The information was sourced from JS Global.