- On month-on-month basis, inflation declined in December 2025 across CPI, SPI and WPI
Inflation is a complex economic phenomenon that has still extensive attention of the economists, policymakers and the central bankers from both developed and developing world. In Pakistan, it is also a chief subject of the macroeconomics and one of the principal concerns of the policymakers and the public. Statistics showed that our country experienced uneven growth pattern throughout its history. Statistics also showed that the average economic growth during last 45 years is approximately 5.5 percent. Unluckily high inflation rate is also considered as an ill for economic growth in the country because it had witnessed high inflation since its independence. The average inflation rate during last 45 years is almost 8 percent.
- Presently according to the Pakistan Bureau of statistics (PBS), CPI inflation General, was increased by 5.6 percent on year-on-year (YoY) basis in December 2025 as against to a rise of 6.1 percent in the last month and 4.1 percent in December 2024. On month-on-month (MoM) basis, it fell by 0.4 percent in December 2025 as against to a rise of 0.4 percent in the previous month and a rise of 0.1 percent in December 2024.
- CPI inflation Urban, grew by 5.8 percent on YoY basis in December 2025 as compared to an increase of 6.1 percent in the last month and 4.4 percent in December 2024. On MoM basis, it decreased by 0.4 percent in December 2025 as against to an increase of 0.5 percent in the previous month and a decrease of 0.1 percent in December 2024.
- CPI inflation Rural, grew by 5.4 percent on YoY basis in December2025 as compared to an increase of 6.3 percent in the previous month and 3.6 percent in December 2024. On MoM basis, it declined by 0.6 percent in December 2025 as compared to a rise of 0.2 percent in the previous month and a rise of 0.3 percent in December 2024.
- SPI inflation on YoY basis grew by 2.5 percent in December 2025 as compared to an increase of 4.2 percent in the previous month and in December 2024 each. On MoM basis, it declined by 0.8 percent in December 2025 as compared to an increase of 0.4 percent in a month earlier and an increase of 0.8 percent in December 2024.
- WPI inflation on YoY basis increased by 0.6 percent in December 2025 as against to an increase of 1.1 percent in the previous month and an increase of 1.9 percent in December 2024. On MoM basis, it declined by 0.9 percent in December 2025 as compared to a decrease of 0.2 percent in the previous month and a decrease of 0.4 percent in December 2024.
- Measured by non-food non-energy Urban increased by 6.9 percent on YoY basis in December 2025 as compared to 6.6 percent of the previous month and 8.1 percent in December 2024. On MoM basis, it grew by 0.5 percent in December2025 as compared to 0.3 percent in previous month and an increase of 0.2 percent in the corresponding month of last year i.e. December 2024.
- Measured by non-food non-energy Rural increased by 8.1 percent on YoY basis in December 2025 against to 8.2 percent in previous month and an increase of 10.7 percent in December 2024. On MoM basis, it increased by 0.6 percent in December 2025 as against to 0.5 percent in the previous month and an increase of 0.6 percent in same month of last year i.e. December2024.
- Measured by 20 percent weighted trimmed-Urban increased by 5.5 percent on YoY basis in December 2025 as compared to 5.3 percent in the last month and 6.2 percent in December2024. On MoM basis, it remained stable at 0.3 percent in December 2025 as compared to the previous month and a rise of 0.1 percent in same month of last year i.e. December 2024.
- Measured by 20 percent weighted trimmed-Rural increased by 6.0 percent on YoY basis in December2025 as compared to a rise of 6.4 percent of the previous month and 6.5 percent in December 2024. On MoM basis, it remained stable at 0.4 percent in December 2025 as compared to the previous month and an increase of 0.6 percent in same month of last year i.e. December 2024.
| Pakistan: General Inflation (%) (Base 2015-16) | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Period | CPI | SPI | WPI | |||||||||||||||
| General | Food | Non-Food | ||||||||||||||||
| National | Urban | Rural | Urban | Rural | Urban | Rural | ||||||||||||
| YoY | MoM | YoY | MoM | YoY | MoM | YoY | MoM | YoY | MoM | YoY | MoM | YoY | MoM | YoY | MoM | YoY | MoM | |
| July-25 | 4.1 | 2.9 | 4.4 | 3.4 | 3.5 | 2.2 | 2.2 | 2.4 | 1.5 | 2.7 | 5.9 | 4.1 | 5.4 | 1.6 | -0.9 | 3.1 | -0.5 | 1.2 |
| Aug-25 | 3.1 | -0.6 | 3.5 | -0.7 | 2.5 | -0.5 | -0.5 | -1.3 | -0.5 | -0.7 | 6.1 | -0.3 | 5.3 | -0.3 | 2.6 | 3.2 | -1.0 | -0.2 |
| Sep-25 | 5.8 | 2.1 | 5.7 | 1.6 | 5.9 | 2.8 | 4.4 | 4.0 | 6.0 | 5.5 | 6.5 | 0.1 | 5.8 | 0.4 | 4.5 | 2.0 | 0.6 | 0.5 |
| Oct-25 | 6.2 | 1.7 | 6.0 | 1.4 | 6.6 | 2.1 | 4.5 | 1.7 | 6.8 | 3.0 | 7.0 | 1.1 | 6.4 | 1.3 | 4.8 | 0.9 | 1.1 | 0.5 |
| Nov-25 | 6.1 | 0.4 | 6.1 | 0.5 | 6.3 | 0.2 | 5.0 | 0.3 | 5.9 | -0.7 | 6.7 | 0.7 | 6.7 | 1.0 | 4.2 | 0.4 | 1.1 | -0.2 |
| Dec-25 | 5.6 | -0.4 | 5.8 | -0.4 | 5.4 | -0.6 | 3.2 | -1.7 | 3.8 | -1.9 | 7.5 | 0.5 | 6.9 | 0.7 | 2.5 | -0.8 | 0.6 | -0.9 |
Conclusion
No doubt, in Pakistan economists are very interested in examining the relationship between inflation and economic growth. One of the main reasons behind this is the fact that the conduct of monetary policy is largely considered to have important consequences for long-term economic growth. Economic growth and inflationary relations have been closely monitored in the economy. It is said that when inflation reaches a peak, it curbs productivity and growth whereas a low and stable inflation rate contributes to economic growth. Unluckily the high inflation rate affects the decision making of almost all economic factors in Pakistan such as consumers, producers, and investors because of uncertainty about the expected consequences of their actions.