KARACHI: The annual inflation in Pakistan eased to 5.6% in December 2025, down from 6.1% in November, according to the Consumer Price Index (CPI).
The reading, however, remains higher than 4.1% recorded in December 2024, indicating that household cost pressures persist despite the slowdown.
On a month-on-month basis, CPI declined by 0.4% in December, reversing a 0.4% increase in November. Urban inflation stood at 5.8% year-on-year, lower than November’s 6.1% but higher than 4.4% a year earlier. Urban prices also fell 0.4% month-on-month.
Analysts and brokerage houses attributed the decline primarily to lower food prices, particularly perishable items such as vegetables, improved supply conditions, and a favorable base effect. Arif Habib Limited noted that easing food inflation, alongside reduced petroleum prices, helped bring overall inflation to multi-year lows.
Despite the relief, experts cautioned that the improvement may be uneven and temporary. While food inflation fell 2.2% month-on-month, core inflation, especially in urban areas, remains elevated.
Price increases were observed in education, healthcare, housing utilities, restaurants, and hotels, reflecting ongoing structural cost pressures.
