Inflation rises to 4.1% in july across Pakistan

Pakistan’s annual inflation reached 4.1 percent on a year-on-year basis in July 2025, rising from 3.2 percent in the previous month and down from 11.1 percent in July 2024.

The overall Consumer Price Index (CPI) rose by 2.9 percent compared to only 0.2 percent in the previous month. In July 2024, the increase was 2.1 percent. Urban inflation also picked up pace. On a year-on-year basis, it jumped to 4.4 percent in July 2025 from 3.0 percent in June and 13.2 percent in July last year. On a monthly basis, urban CPI increased by 3.4 percent compared to just 0.1 percent in June and 2.0 percent in the same month last year.

Rural inflation followed a similar trend. It rose by 3.5 percent on an annual basis, slightly lower than 3.6 percent in June, but still higher than the 8.1 percent seen in July 2024. Month-on-month, rural CPI went up by 2.2 percent, higher than June’s 0.5 percent. The Sensitive Price Index (SPI), which tracks essential items, showed some relief on a yearly basis. SPI dropped by 0.9 percent in July 2025, following a 1.9 percent drop in June. However, month-on-month SPI rose by 3.1 percent, compared to no change in June and a 2.0 percent rise in July last year.

Meanwhile, the Wholesale Price Index (WPI) decreased by 0.5 percent on a yearly basis, following a 0.6 percent rise last month and 10.4 percent in July 2024. Month-on-month WPI rose by 1.2 percent compared to 0.6 percent in June. Experts say rising inflation could put more pressure on household budgets in the coming months if the trend continues.