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Pakistan’s average CPI inflation fell to 4.49% in fiscal year 2024–25, from 23.41% in FY2023–24, according to the Pakistan Bureau of Statistics (PBS). That annual average is different from June 2025’s 3.23% year-on-year inflation rate and 0.23% month-on-month rise: all three figures describe separate comparisons.
What the FY2025 inflation figure measures
Pakistan’s fiscal year runs from July through June. The PBS figure of 4.49% is the average inflation rate across July 2024–June 2025; the comparable average for July 2023–June 2024 was 23.41%. The government’s July 4, 2025, announcement rounded the FY2024–25 average to 4.5%.
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An annual average is not the inflation rate in the final month of the year. It summarizes the fiscal-year period, while a monthly reading describes price changes over a specific comparison period.
Why June’s year-on-year and monthly rates differ
In its June 2025 release, PBS reported that the Consumer Price Index (CPI) was 3.23% higher than in June 2024 and 0.23% higher than in May 2025. The first is the year-on-year (YoY) rate; the second is the month-on-month (MoM) rate. The State Bank of Pakistan’s June monitor rounded those readings to 3.2% YoY and 0.2% MoM.
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- FY average: compares the average rate across the fiscal-year months with the corresponding prior-year period.
- YoY: compares a month’s CPI with the same month a year earlier.
- MoM: compares a month’s CPI with the immediately preceding month.
These figures show disinflation—a slowdown in the pace of price increases—not a general fall in prices. In June, the CPI was still above both its June 2024 level and its May 2025 level.
How inflation moved during FY2024–25
The Ministry of Finance’s Pakistan Economic Survey 2024–25 reported average CPI inflation of 4.7% for July–April FY2025, compared with 26.0% for the same months of FY2024. Its monthly YoY series fell from 11.1% in July 2024 to 0.3% in April 2025. June’s 3.23% YoY reading was higher than April’s low, so the year did not end with an uninterrupted month-by-month decline.
What the government said was behind the slowdown
The Economic Survey associated lower inflation with improved food availability, lower energy prices, excess production capacity and lower global commodity prices. It also cited policy measures, including fiscal discipline, State Bank interventions and exchange-rate stability.
Those are the government’s explanations for the decline. The survey material does not quantify how much each factor independently contributed, so the figures support the trend but do not establish a precise causal share for any one factor.
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What the figures mean for households
A lower inflation rate means prices are rising more slowly on average; it does not mean that the overall cost of living has returned to an earlier level. The FY2024–25 average describes the pace of CPI increases across the year, while June’s positive YoY and MoM readings show that the measured price index remained higher than in both comparison periods.
These are national headline CPI readings. They should not be treated as a measure of every household’s individual expenses or as interchangeable with other price measures such as urban or rural CPI, wholesale prices or the Sensitive Price Indicator, which the State Bank reports separately.
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