Moaaz Manzoor

Food inflation in Pakistan turned negative in December 2025 as prices of key vegetables and perishables recorded sharp declines, providing significant relief to consumers, according to the latest figures released by the Pakistan Bureau of Statistics (PBS).

On a month-on-month basis, food inflation fell by 1.7 percent, marking a clear reversal from previous months when food prices had remained elevated. The decline was driven largely by a steep fall in vegetable prices, reflecting improved market supplies and seasonal harvesting patterns.

According to the data, prices of tomatoes dropped by more than 45 percent during the month, while onions fell by nearly 33 percent. Potatoes also recorded a substantial decline of around 18 percent, while other vegetables such as gourds, leafy greens and pulses showed notable price reductions. These declines significantly eased pressure on household food budgets, particularly for low- and middle-income families.

The fall in food prices was observed across both urban and rural markets, though the impact was more pronounced in rural areas, where food accounts for a larger share of household consumption. Improved availability of fresh produce, combined with smoother supply chains, contributed to a sharp price correction after several months of elevated food inflation.

On a year-on-year basis, food inflation moderated to 3.2 percent in December, reflecting a substantial easing compared to earlier in the year when food prices had surged due to supply disruptions and adverse weather conditions. The decline marks one of the lowest food inflation readings recorded in recent months.

Despite the broad decline, not all food items registered price drops. Certain staples, such as wheat flour, cooking oil, and eggs, recorded modest increases, limiting the overall pace of decline. Nevertheless, the magnitude of the fall in vegetable prices outweighed these increases, resulting in a net negative food inflation rate for the month.

The sharp correction in food prices played a key role in pulling overall consumer inflation down to 5.6 percent in December, highlighting the strong influence of food costs on headline inflation. Economists note that while the decline offers short-term relief to households, food prices remain vulnerable to seasonal fluctuations and supply-side disruptions.

The latest data suggest that food inflation may remain moderate in the near term if supply conditions remain stable, though weather patterns, transportation costs and input prices will continue to shape price trends in the months ahead.

Credit: INP-WealthPk