Pakistan’s inflation eases to 5.6% following SBP rate cut

ISLAMABAD: Pakistan’s Consumer Price Index eased to 5.6% in December 2025, down from 6.1% in November, according to data released by the Pakistan Bureau of Statistics on Tuesday.

On a month-on-month basis, consumer prices declined by 0.4%, compared to a 0.4% increase in the previous month. 

The decline in inflation was mainly driven by a reduction in food prices, particularly perishable items. Prices of vegetables such as tomatoes, onions, and potatoes fell sharply during the month, helping bring down overall inflation. However, prices of some food items, including wheat, cooking oil, eggs, and milk products, increased.

The latest inflation figures come as the government and the central bank closely monitor price trends amid efforts to stabilize the economy.

Last month, the State Bank of Pakistan reduced its policy rate by 50 basis points to 10.5% after four consecutive monetary policy meetings in which the central bank maintained the status quo.

According to a statement issued by the monetary policy committee, inflation remained within the 5-7% target range on average from July to November in fiscal year 2025-26.