ISLAMABAD – Pakistan’s annual consumer inflation rose to 4.1 percent in July 2025, up from 3.2 percent in June, driven by sharp increases in the prices of essential food items, energy, and healthcare products.
The Pakistan Bureau of Statistics reported that the Consumer Price Index recorded a month‑on‑month increase of 2.9 percent, the highest monthly jump in several months. The surge was largely attributed to higher electricity and gas tariffs, along with notable price spikes in vegetables, pulses, and edible oils.
Economic analysts noted that the rise in energy costs and transportation fares has had a cascading effect on household budgets. Price hikes in imported commodities, combined with local supply chain disruptions, further amplified inflationary pressures during the month.
The State Bank of Pakistan has maintained its policy rate at 11 percent, emphasizing the need to keep real interest rates positive and control inflation expectations. Authorities are also monitoring core inflation trends closely to assess the impact of ongoing economic reforms.
Government officials had initially forecast inflation to remain between 3.5 and 4.5 percent for July. However, unexpected supply shocks in the energy and food sectors pushed inflation above early projections, raising concerns about affordability for lower‑income households.
Economists warn that further volatility in global energy markets or delays in domestic subsidy adjustments could prolong price pressures in the coming months. Policymakers are expected to focus on supply‑side measures and fiscal discipline to keep inflation within the target range.
This story has been reported by PakTribune. All rights reserved.