Inflation has increased significantly in the first month of the new fiscal year as compared to June, the inflation rate increased by 2.92 percent in July 2025, after which the annual inflation rate increased to 4.07 percent last month.
Pakistan Bureau of Statistics (PBS) has released its weekly inflation data. According to the report of the Bureau of Statistics, the annual rate of inflation in June 2025 was recorded at 3.23 percent and in July 2024 at 11.1 percent. According to the report, last month, the monthly inflation rate in villages increased by 2.15 percent and in cities by 3.45 percent. National Bureau of Statistics says that last month, the annual inflation rate in villages was 3.53 percent and the annual inflation rate in cities was 4.43 percent. It should be noted that the Ministry of Finance had estimated inflation for July at between 3.5 and 4.5 percent.
According to the PBS, prices of 11 essential items increased during the week under review, while the rates of 12 items fell. Items that saw a price increase included eggs, beef, powdered milk, garlic, mutton, jaggery and onions. Prices of firewood, energy savers and cigarettes also rose last week. Tomatoes, chicken, sugar, moong dal, potatoes, mash dal and wheat flour were among the items that became cheaper.
The price of sugar fell by 0.71 per cent, with the average rate recorded at Rs179.33 per kilogram. However, sugar was sold at up to Rs190 per kilogram in various cities, according to PBS. In Karachi, Peshawar and Faisalabad, the price reached Rs190 per kilogram.
Adviser to the finance minister, Khurram Schehzad said that social media platform X that inflation remained moderate in July 2025. He said the inflation rate stood at 4.1 per cent during the month, compared to 11.1 per cent in July 2024. Food inflation in rural areas was recorded at 2.2 per cent, while in urban areas, it declined further to 1.5 per cent. In comparison, these figures were 3.4 per cent and 1.3 per cent respectively in July 2024. The core inflation rate fell from 11.7 per cent to 7.0 per cent year-on-year, Schehzad added.