Inflation in Pakistan dropped slightly during the week ending March 20, according to the latest figures by the Pakistan Bureau of Statistics (PBS). The Sensitive Price Indicator (SPI), which tracks short-term price changes, showed a decrease of 0.35%.
As reported by Khyber News, the key reason for this decline was a sharp fall in vegetable prices. Tomatoes saw the largest drop at 7.08%. Onion prices fell by 6.07%, garlic dropped by 5.59%, eggs by 4.64%, and potatoes by 2.5%.
Other essential items also became slightly cheaper. Sugar prices declined by 0.87%. Lipton tea was down by 1.3%. Firewood, a common household fuel, dropped by 0.6%. These changes reflect the ongoing efforts to control inflation in Pakistan.
However, not everything became cheaper. A few goods showed upward price movement. Long cloth rose by 1.23%. Printed lawn fabric saw a 2.9% hike. LPG prices increased by 1.53%. Bananas also climbed by 1.45%.
Prices of daily-use items also inched up. Bread became costlier by 0.55%, beef by 0.25%, and curd by 0.24%. Despite this, overall price inflation eased slightly.
On a yearly basis, SPI data showed a rare drop of 1.2%. Onion prices dropped massively by 67.67% compared to last year. Wheat flour became cheaper by 35.58%. Tomatoes declined by 29.45%. Electricity charges for the lowest usage tier dropped by 18.92%. Fuel prices also eased, with diesel showing a 9.37% decline and petrol down by 8.55%.
Still, some essential goods remain more expensive than last year. Ladies’ sandals jumped 75.09%. Powdered milk prices rose by 25.75%. Beef saw a 21.01% increase. Chicken became costlier by 18.23%. Sugar surged by 18.65%. Vegetable ghee increased by 16.13%. These items continue to reflect rising costs in core food categories despite easing inflationary pressures elsewhere.
The impact of inflation in Pakistan was not equal across income groups. Lower-income households experienced a 1.84% drop in prices. Higher-income groups saw only a 0.49% decrease. This suggests that the recent price relief is benefiting the poor more than the wealthy.
Even though price pressure remains, experts say Pakistan’s inflation is now under better control. Topline Securities expects the Consumer Price Index (CPI) for March 2025 to fall to a 30-year low. CPI is projected to land between 0.5% and 1.0% year-on-year, with a monthly rise of 0.9%. This could bring average inflation for the first nine months of FY25 to 5.38%. Last year, this figure stood at a staggering 27.06%.
These numbers show a major shift in the country’s economic landscape. Inflation in Pakistan is easing, offering some relief to households struggling with high living costs.
