This marks a sharp deceleration compared to February’s 1.5% and a significant drop from 20.7% in March 2024, indicating a trend of disinflation in the country.
The Pakistan Bureau of Statistics reported that while inflation decreased year-on-year, there was a 0.9% increase in CPI on a month-on-month basis in March, following a decrease of 0.8% in February.
Topline Securities noted that March’s CPI of 0.7% is the lowest YoY reading in over 30 years. For the first nine months of the fiscal year (9MFY25), the average inflation stood at 5.25%, down from 27.06% during the same period last year.
Despite the overall decline in inflation, certain items saw price increases. Urban areas witnessed higher prices for food items like moong pulses (31.02%), butter (23.84%), and sugar (18.75%), while non-food items such as motor vehicle tax (168.79%) and footwear (31.89%) also saw rises. In rural areas, fresh fruits (24.62%) and tomatoes (22.11%) experienced notable price hikes.