December inflation rises by 5.6%

January 01, 2026 (MLN): Pakistan's headline Consumer Price Index (CPI) inflation by 5.6% year-on-year (YoY) in December 2025, compared  from 6.1% increase in November 2025, the Pakistan Bureau of Statistics (PBS) reported today.

This compares to 4.1% recorded in December 2024.

On a month-on-month (MoM) basis, inflation decreased by 0.4% in December 2025, reversing the 0.4% increase recorded in the previous month and marking a sharper decline compared to a 0.1% rise in December 2024.

Cumulatively, on a 6MFY26 basis, the average CPI stands at 5.15% compared to 7.3% in the same period last year.

In urban areas, CPI inflation stood at 5.8% YoY, down from 6.1% in November but higher than 4.4% in December 2024. On a monthly basis, urban inflation decreased by 0.4%, compared to a 0.5% increase in the previous month and a 0.1% decline in December 2024.

Meanwhile, rural CPI inflation eased to 5.4% YoY in December, compared to 6.3% in November and 3.6% in December 2024. On a MoM basis, rural prices fell by 0.6%, reversing the 0.2% increase recorded in the previous month and contrasting with a 0.3% rise in December 2024.

The Sensitive Price Index (SPI), which tracks weekly changes in essential items, registered a 2.5% YoY increase in December 2025, down from 4.2% a month earlier and matching the 4.2% recorded in December 2024. On a MoM basis, it fell 0.8%, reversing the 0.4% rise in November and matching the 0.8% increase seen in December 2024.

Separately, Wholesale Price Index (WPI) inflation moderated to 0.6% YoY, compared to 1.1% in the previous month and 1.9% in December 2024. On a monthly basis, wholesale prices decreased by 0.9%, following a 0.2% decline in November and a 0.4% drop in December 2024.

Core inflation indicators showed mixed trends. Non-food non-energy (NFNE) inflation in urban areas rose to 6.9% YoY from 6.6% in November, though lower than 8.1% in December 2024.

In rural areas, NFNE inflation remained elevated at 8.1% YoY, slightly down from 8.2% in November but significantly lower than 10.7% in December 2024.

The 20% weighted trimmed mean measure showed urban core inflation at 5.5% YoY, up from 5.3% in November and down from 6.2% in December 2024.

Rural trimmed mean inflation stood at 6.0% YoY, easing from 6.4% in November and 6.5% in December 2024.

The data indicates that while headline inflationary pressures have moderated since November, the pace of annual price growth remains above last year's levels. However, the month-on-month decline suggests some near-term relief in price pressures across both urban and rural areas.

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