ISLAMABAD: Pakistan’s headline inflation slowed to 3.23 per cent year-on-year in June 2025, as food, utilities and essential consumer prices dropped sharply, official data showed Tuesday. The annual average inflation for FY2024-25 clocked in at 4.49pc.
This marks the eleventh consecutive month that inflation has remained in single digits, strengthening expectations for a further policy rate cut by the State Bank of Pakistan (SBP), whose benchmark rate is still at 11 percent, down from a record 22pc last year. The easing trend was led by a slowdown in food inflation, which fell to 2.56pc in June from 3.07pc in May. Perishable food prices remained in deflation, though the pace of decline narrowed to -10.55pc from -9.2pc a month earlier.
Core inflation—which excludes volatile food and energy prices—also dropped to 6.9pc in June from 7.3pc in May and was significantly lower than the 12.2pc recorded in June 2024. Month-on-month, core prices slipped 0.2pc, keeping the real interest ra
