Pakistan sees inflation uptick to 4.1% in July, but still far lower than last year’s double-digit surge

ISLAMABAD – Inflation in Pakistan edged higher to 4.1% in July 2025, showing a modest rise from the 3.2% recorded in June, but a significant improvement compared to the 11.1% spike in July 2024, according to official figures from the Pakistan Bureau of Statistics (PBS).

On a monthly basis, inflation climbed 2.9% in July, marking a steep rise from 0.2% in June, and surpassing the 2.1% increase seen last July.

Breaking it down by region, urban inflation was more pronounced, rising to 4.4% YoY compared to 3.0% in June, though far below the 13.2% recorded in July 2024. MoM urban inflation also surged to 3.4%, a sharp jump from 0.1% last month.

In contrast, rural inflation stood at 3.5% YoY, slightly below June’s 3.6%, and much reduced from 8.1% in July 2024. MoM rural CPI was recorded at 2.2%, consistent with the year-ago figure.

The Sensitive Price Index (SPI), which captures shifts in prices of essential goods, posted a 0.9% YoY decrease, building on a 1.9% drop in June. However, MoM SPI rose by 3.1%, reflecting a spike in short-term price movements.

Similarly, Wholesale Price Index (WPI) inflation declined 0.5% YoY, reversing a 0.6% increase a month earlier. It was down considerably from the 10.4% increase in July last year. On a monthly scale, WPI rose 1.2%, up from 0.6% in June.

The inflation data shows a balancing act between easing long-term trends and short-term cost pressures, especially in food, fuel, and services—areas that remain sensitive for millions of households.