Moaaz Manzoor

Pakistan’s inflation rate declined to 6.1 percent in November 2025, reflecting easing price pressures across several consumer categories, according to the Monthly Economic Update and Outlook released by the Finance Division for December 2025.

The report stated that the Consumer Price Index (CPI) showed a continued downward trend, falling from 6.2 percent in October 2025. On a month-on-month basis, inflation rose by 0.4 percent in November, significantly lower than the 1.8 percent increase recorded in the previous month, indicating improving price stability in the domestic market.

The moderation in inflation was attributed to improved supply conditions, particularly in food items, and relative stability in energy prices. Perishable food prices declined by 3.7 percent year-on-year, while non-perishable food items recorded a moderate increase of 7.3 percent. The easing of food inflation played a central role in containing overall price pressures during the month.

The report noted that education and health-related costs remained elevated, rising by 9.0 percent and 8.3 percent respectively, reflecting persistent structural cost pressures in these sectors. Prices of clothing and footwear increased by 6.5 percent, while transport costs rose by 6.1 percent. Meanwhile, communication costs increased marginally by 0.6 percent, indicating relative price stability in that segment.

The Sensitive Price Indicator (SPI), which tracks weekly changes in essential commodities, recorded a decline of 0.09 percent during the week ending December 24, 2025. Of the 51 items monitored, prices of 13 items increased, 11 items declined and 27 items remained unchanged, suggesting balanced supply conditions in essential consumer goods.

According to the report, easing inflation was supported by improved agricultural output, better supply chain management and stable macroeconomic conditions. Adequate availability of food items and controlled energy prices helped limit upward pressure on consumer prices during the month.

The Finance Division noted that inflationary trends would continue to be closely monitored, particularly in view of global commodity price movements and domestic demand conditions. It added that prudent monetary and fiscal coordination remain essential to maintaining price stability and protecting household purchasing power.

Looking ahead, the report projected that inflation would remain within a manageable range in the coming months, supported by stable supply chains, continued fiscal discipline and measured monetary policy actions. The government reaffirmed its commitment to containing inflation while supporting sustainable economic growth and protecting vulnerable segments of the population.

Credit: INP-WealthPk