Abdul Ghani

Wholesale price inflation eased to 0.6 percent in December 2025 as prices of several key commodities declined, according to data released by the Pakistan Bureau of Statistics (PBS).

On a month-on-month basis, the Wholesale Price Index (WPI) recorded a decrease of 0.9 percent, indicating a broad-based reduction in producer-level prices. The decline was mainly driven by lower prices of agricultural commodities, particularly vegetables and food items, which exerted downward pressure on the overall index.

The agriculture, forestry and fishery group recorded a year-on-year decline of 1.7 percent, reflecting lower prices of key crops. Within this category, vegetables, potatoes, onions and other perishable items showed notable reductions compared to the previous month. These declines played a major role in pulling down the overall wholesale index.

The food, beverages and tobacco group posted a marginal year-on-year increase; however, the pace of increase slowed significantly compared to previous months. Several food items, including wheat, pulses and edible oils, recorded either moderate increases or declines, contributing to the overall easing trend.

The data further show that prices in the manufacturing and industrial segments displayed mixed movements. While some categories registered marginal increases, others, including certain raw materials and intermediate goods, recorded declines, resulting in an overall moderation in wholesale inflation.

On a month-on-month basis, the largest price decreases were observed in vegetables, edible roots, pulses and selected agricultural commodities. These declines offset moderate increases recorded in a few industrial and energy-related items.

The December data indicate that easing commodity prices at the wholesale level contributed to a slowdown in overall inflationary pressures. The moderation in wholesale inflation aligns with trends observed in consumer prices during the same period.

According to PBS, the reduction in wholesale price inflation reflects improved supply conditions and lower prices for key food items. The data suggest that cost pressures at the producer level eased during the month, supporting a gradual moderation in overall price trends.

Credit: INP-WealthPk