Moaaz Manzoor

Rural inflation eased to 5.4 percent in December 2025 as falling food prices provided significant relief to households in rural areas, according to the latest data released by the Pakistan Bureau of Statistics (PBS).

On a month-on-month basis, rural inflation declined by 0.6 percent, reflecting a sharper slowdown compared to urban areas, where inflation eased by 0.4 percent during the same period. The decline in rural inflation was primarily driven by a substantial reduction in food prices, particularly vegetables and other perishable items.

Food inflation in rural areas fell by 2.2 percent in December, as prices of key commodities such as tomatoes, onions, potatoes and other vegetables declined sharply. These items carry a relatively higher weight in the rural consumption basket, amplifying the impact of falling prices on overall rural inflation.

According to the PBS data, prices of tomatoes dropped by over 30 percent on a month-on-month basis, while onions, potatoes and other vegetables also recorded notable declines. The easing of food prices reflected improved market supply and seasonal availability during the month.

On a year-on-year basis, rural inflation stood at 5.4 percent in December, down from 6.3 percent in November. The decline was primarily driven by lower food inflation, even as non-food components continued to exert upward pressure on prices.

Non-food inflation in rural areas remained elevated, with housing, utilities, healthcare and education continuing to record price increases. Housing, water, electricity and gas charges rose during the month, while education and health-related costs also showed year-on-year growth, partially offsetting the relief from falling food prices.

The data further showed that rural food prices declined at a faster pace than in urban areas, where food inflation eased to 2.9 percent. The sharper decline in rural food inflation reflects the greater weight of perishable food items in rural consumption baskets.

Overall, the decline in rural inflation in December points to easing cost pressures for rural households, largely driven by improved availability of agricultural produce. However, persistent increases in non-food components suggest that underlying inflationary pressures remain, despite the temporary relief provided by lower food prices.

Credit: INP-WealthPk