Inflation climbs to 3.5pc for May

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Headline inflation rose 3.5 per cent year-on-year in May 2025, according to data released by the Pakistan Bureau of Statistics (PBS) on Monday.

On a month-on-month basis, it decreased by 0.2pc in May as compared to a decrease of 0.8pc in the previous month, according to data.

This was higher than the finance ministry’s expectations, which had anticipated 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.

Topline Securities, in a note, said that inflation during 11MFY25 had averaged at 4.61pc compared to 24.52pc in 11MFY24.

Year-on-year

Urban:

Food item prices that increased included: 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 & spices (19.98pc).

Non-food items prices that increased: motor vehicle tax (168.79pc), personal effects (33.24pc), electrical appliances (17.63pc), water supply (14.84pc) and hosiery (14.41pc).

Rural:

Food item prices that increased: 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: motor vehicle tax (126.61pc), personal effects (37.47pc), dental services (24.74pc), drugs and medicines (16.33pc) and recreation and culture (15.87pc).

Month-on-month

Urban:

Food items that increased: eggs (24.38pc), chicken (8.63pc), condiments and spices (5.50pc), sugar (4.07pc), gur (3.66pc) and milk powder (2.80pc).

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).

Rural:

Food items that increased: 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).

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