CPI inflation rate hikes to 3.5pc for May
Business
This shows inflation is rising again, especially in daily-use items affecting ordinary people
LAHORE (Web Desk) – Pakistan's inflation rate rose to 3.5 per cent in May year-on-year, higher than the Finance Ministry's expected 1.5-2 per cent.
The inflation slightly decreased by 0.2 per cent compared to April.
Over 11 months of FY25, average inflation was 4.61 per cent, much lower than 24.52 per cent last year.
Prices of essential food items like chicken, fruits, pulses, sugar, and milk powder surged in both urban and rural areas.
Non-food items such as motorvehicle tax, personal effects, and healthcare services also saw big increases.
Month-on-month, items like eggs, spices, and garments became costlier.
This shows inflation is rising again, especially in daily-use items, affecting ordinary people.
According to data released by the Pakistan Bureau of Statistics (PBS) Monday, Pakistan’s total inflation rose 3.5 per cent year-on-year in May 2025. It decreased by 0.2pc in May as compared to a decrease of 0.8pc in the previous month on a month-on-month basis, the data indicated.
This was higher than the finance ministry’s expectations, which expected inflationary outlook to remain between 1.5-2.0pc in May, with a possible rise to 3.0-4.0pc by June.
The finance ministry had depicted a cautious outlook towards growth in Large-Scale Manufacturing (LSM), presenting a rising trajectory for inflation during May and June.
Experts said that inflation during 11MFY25 had averaged at 4.61pc compared to 24.52pc in 11MFY24.
Food item prices that increased included in urban areas year on year basis: chicken 51.96pc, pulse moong 31.13pc, fresh fruits 29.5pc, butter 26.15pc, milk powder 21.80pc, sugar 21.71pc, honey 21.23pc and condiments and spices 19.98pc.
Non-food items prices that increased: motorvehicle tax 168.79pc, personal effects 33.24pc, electrical appliances 17.63pc, water supply 14.84pc and hosiery 14.41pc.
Food item prices that increased in rural areas: chicken 46.05pc, pulse moong 31.39pc, fresh fruits 31.13pc, milk powder 25.13pc, besan 22.56pc and sugar 21.44pc.
Non-food items that increased: motorvehicle tax 126.61pc, personal effects 37.47pc, dental services 24.74pc, drugs and medicines 16.33pc and recreation and culture 15.87pc.
Food items that increased in urban areas: eggs 24.38pc, chicken 8.63pc, condiments and spices 5.50pc, sugar 4.07pc, gur 3.66pc and milk powder 2.80pc month on month.
Non-food item prices that increased: cotton cloth 3.20pc, motor vehicles 1.86pc, postal services 1.74pc, major tools & equipment 1.23pc, and readymade garments 1.02pc.
Food items that increased in rural areas: eggs 19.27pc, fresh fruits 5.07pc, condiments and spices 4.91pc, sugar 2.90pc, gur 2.42pc, pulse gram 1.36pc and pulse moong 0.77pc.
Non-food items that increased: dental services 5.97pc, personal effects 4.16pc, doctor clinic fee 3.15pc, education 1.59pc and furniture and furnishing 1.46pc.
