Pakistan August CPI up 3% year-on-year, lower than estimates

ISLAMABAD: Pakistan saw its consumer price index (CPI) increasing 3 per cent in August on year-on-year basis as compared to 4.1 per cent of the previous month (July), the latest data showed, which is lower than the government estimates.

Read more: Food, fuel prices accelerate annual inflation to 4.1pc in July

However, the devastating floods in Punjab, which will soon affect Sindh, are expected to fuel food prices in the coming weeks and months, unleashing a domino effect in term of overall inflation.

According to the Pakistan Bureau of Statistics (PBS), the corresponding figures for August 2024 was 9.6 per cent.

However, the data reveals that the CPI decreased by 0.6 per cent on month-on-month basis, in
August 2025 as compared to an increase of 2.9 per cent in the previous month and an increase of 0.4 per cent in August 2024.

Earlier, the Ministry of Finance in its monthly report had said that inflation would remain within the range of 4-5 per cent in August.

URBAN INFLATION vs RURAL INFLATION

As far as the urban inflation is concerned, the urban CPI was up 3.4 per cent year-on-year basis against 4.4 per cent in July and 11.7 per cent in August 2024.

On a month-on-month basis, the urban inflation was down by 0.7 per cent in August 2025 against 3.4 per cent in the previous month and an increase of 0.3 per cent in August 2024.

Meanwhile, the rural inflation rate remained lower than in the urban centres, with the rural CPI clocking at 2.4 per cent year-on-year.

It had increased by 3.5 per cent in the previous month and 6.7 per cent in August 2024.

On the other hand, the rural inflation decreased at the rate of 0.5 per cent in August 2025 as compared to an increase of 2.2 per cent in the previous month and by 0.6 per cent in August 2024.