Pakistan’s Consumer Price Index (CPI) Inflation dropped to 2.41% year to year (yoy) in January 2025 and marked its lowest level of 111 months, according to data released by the Pakistan Bureau of Statistics (PBS) Monday.

Inflation reflects a sharp disinflationary trend, down from 4.1% in December 2024 and significantly lower than 28.3% in January 2024.

In a month-to-month (MOM) base, inflation experienced a slight increase of 0.2% in January compared to 0.1% in the previous month.

Financial analysts note that falling inflation is a major shift from last year’s record heights, giving consumer relief.

However, key foods and non-food were continued to witness remarkable price increases, especially in rural areas.

Food and non-food prize developments

In urban areas, the highest yoy price increases were recorded for potatoes (45.14%), grammar (44.72%) and pulse grams (41.73%), while non-food inflation was driven by motor vehicles (168.79%) , footwear (31.88%) and medical services.

In rural areas, foods such as potatoes (49.32%), gramma (45.85%) and pulse grams (45.24%) Steep price increases along with motor vehicle tax (126.61%) and educational costs (23.41%).

In one month to month, chicken prices rose by 35.26% in urban areas and 33.02% in rural markets, while sugar, fresh fruits and cooking oil also so notable increases.