#CPIWatch

Pakistan's inflation rate, measured by the Consumer Price Index (CPI), slowed to 4.1% year-on-year in December 2025, down from 4.9% in November. This decrease is attributed to stabilizing food prices, despite challenges posed by sluggish economic growth.

*Key Highlights:*

- *Urban CPI Inflation:* 4.4% in December 2025, down from 5.2% in November

- *Rural CPI Inflation:* 3.6% in December 2025, compared to 4.3% in November

- *Sensitive Price Index (SPI) Inflation:* 4.2% in December, down from 7.3% in November

- *Wholesale Price Index (WPI) Inflation:* 1.9% in December, compared to 2.3% in November

The State Bank of Pakistan (SBP) is expected to review the policy rate later this month, considering the slowing inflation.¹

Want to know more about the impact of inflation on Pakistan's economy or the SBP's next move?