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Business Recorder
2 days ago
- Business
- Business Recorder
Inflation in Pakistan rises to 3.5% in May 2025
Headline Inflation YoY Headline Inflation YoY Pakistan's headline inflation clocked in at 3.5% on a year-on-year basis in May 2025, a reading higher than that of April 2025 when it stood at 0.3%, showed Pakistan Bureau of Statistics (PBS) data on Monday. On a month-on-month basis, it decreased by 0.2% in May 2025, as compared to a decrease of 0.8% in the previous month and a decrease of 3.2% in May 2024. CPI inflation average during 11MFY25 stood at 4.61% as compared to 24.52% in 11MFY24. Inflation in Pakistan has been a significant and persistent economic challenge, particularly in recent years. In May 2023, the CPI inflation rate hit a record high of 38%. However, it has been on a downward trajectory since then. Last month, the Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) cut the key interest rate by 100 basis points (bps) to 11%, the lowest policy rate since March 2022 (9.75%). The central bank has cut the rate by 1,100bps since June from an all-time high of 22%. The CPI reading is higher than the government's expectations. The Finance Ministry in its monthly economic report expected inflation to ease to between 1.5% and 2% year-on-year in May, before picking up to 3%-4% in June. 'Exports and remittances are expected to maintain their upward trend in the coming months, keeping the current account within a manageable range,' the ministry said. Meanwhile, the latest CPI reading was also higher than the projections made by several brokerage houses. JS Global projected Pakistan's headline inflation to inch up to 2.7% in May. 'Pakistan's CPI is expected to clock in at 2.7% for May. The base effect is now fading, signalling a return to normalised price trends. This is likely to take 11MFY25 average inflation to 4.7%, down from 11MFY24 average of 24.9%,' said JS Global. Meanwhile, Insight Securities, another brokerage house, expected headline inflation to clock in at 3.4% in May. Urban, rural inflation The PBS said CPI inflation urban increased to 3.5% on year-on-year basis in May 2025, as compared to 0.5% of the previous month and 14.3% in May 2024. On month-on-month basis, it increased to 0.1% in May 2025, as compared to a decrease of 0.7% in the previous and a decrease of 2.8% in May 2024. CPI inflation rural increased to 3.4% on year-on-year basis in May 2025 as compared to a decrease of 0.1% in the previous month and 8.2% in May 2024. On month-on-month basis, it decreased by 0.5% in May 2025 as compared to a decrease of 1.0% in the previous month and a decrease of 3.9% in May 2024
Arab News
2 days ago
- Business
- Arab News
Pakistan inflation inches up 3.5% year-on-year in May 2025
ISLAMABAD: Pakistan's annual inflation rate rose to 3.5% in May, higher than the April 2025 reading of 0.3%, data from the statistics bureau showed on Monday. On a month-on-month basis, inflation decreased by 0.2% in May 2025, as compared to a decrease of 0.8% in the previous month and a decrease of 3.2% in May 2024. The CPI inflation average during 11MFY25 stood at 4.61 percent, compared to 24.52% in 11MFY24. Inflation has cooled significantly, easing from 37.97% in May 2023. The CPI reading is higher than the government's expectations. In its monthly economic report released last week, the finance ministry expected inflation to ease to between 1.5% and 2% year-on-year in May, before picking up to 3%-4% in June. 'Improved weather conditions, better crop yields and a stable exchange rate have helped reduce inflation to a historical low,' the finance ministry report had said, adding that 'inflation is projected to remain between 1.5-2.0% in May, with a possible rise to 3.0-4.0 percent by June 2025.' The latest CPI reading was also higher than projections made by several brokerage houses. JS Global projected Pakistan's headline inflation to inch up to 2.7% in May. 'Pakistan's CPI is expected to clock in at 2.7 percent for May. The base effect is now fading, signaling a return to normalized price trends. This is likely to take 11MFY25 average inflation to 4.7%, down from 11MFY24 average of 24.9%,' JS Global had said in a report. Last month, the State Bank of Pakistan cut the key interest rate by 100 basis points (bps) to 11%, the lowest policy rate since March 2022 (9.75%). The central bank has cut the rate by 1,100 bps since June from an all-time high of 22%.
Business Recorder
3 days ago
- Business
- Business Recorder
Inflation in Pakistan inches up to 3.5% in May 2025
Pakistan's headline inflation clocked in at 3.5% on a year-on-year basis in May 2025, a reading higher than that of April 2025 when it stood at 0.3%, showed Pakistan Bureau of Statistics (PBS) data on Monday. On a month-on-month basis, it decreased by 0.2% in May 2025, as compared to a decrease of 0.8% in the previous month and a decrease of 3.2% in May 2024. CPI inflation average during 11MFY25 stood at 4.61% as compared to 24.52% in 11MFY24. Inflation in Pakistan has been a significant and persistent economic challenge, particularly in recent years. In May 2023, the CPI inflation rate hit a record high of 38%. However, it has been on a downward trajectory since then. Last month, the Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) cut the key interest rate by 100 basis points (bps) to 11%, the lowest policy rate since March 2022 (9.75%). The central bank has cut the rate by 1,100bps since June from an all-time high of 22%. The CPI reading is higher than the government's expectations. The Finance Ministry in its monthly economic report expected inflation to ease to between 1.5% and 2% year-on-year in May, before picking up to 3%-4% in June. 'Exports and remittances are expected to maintain their upward trend in the coming months, keeping the current account within a manageable range,' the ministry said. Meanwhile, the latest CPI reading was also higher than the projections made by several brokerage houses. JS Global projected Pakistan's headline inflation to inch up to 2.7% in May. 'Pakistan's CPI is expected to clock in at 2.7% for May. The base effect is now fading, signalling a return to normalised price trends. This is likely to take 11MFY25 average inflation to 4.7%, down from 11MFY24 average of 24.9%,' said JS Global. Meanwhile, Insight Securities, another brokerage house, expected headline inflation to clock in at 3.4% in May. Urban, rural inflation The PBS said CPI inflation urban increased to 3.5% on year-on-year basis in May 2025, as compared to 0.5% of the previous month and 14.3% in May 2024. On month-on-month basis, it increased to 0.1% in May 2025, as compared to a decrease of 0.7% in the previous and a decrease of 2.8% in May 2024. CPI inflation rural increased to 3.4% on year-on-year basis in May 2025 as compared to a decrease of 0.1% in the previous month and 8.2% in May 2024. On month-on-month basis, it decreased by 0.5% in May 2025 as compared to a decrease of 1.0% in the previous month and a decrease of 3.9% in May 2024
Business Recorder
5 days ago
- Business
- Business Recorder
PSX extends winning streak
KARACHI: The Pakistan Stock Exchange (PSX) ended the week on a positive note as investor sentiment stayed upbeat, fueled by optimism over the upcoming budget and fresh investment pledges pouring in from abroad. The benchmark KSE-100 Index rose by 719.69 points, or 0.60 percent, to close at an impressive 119,691 points, up from 118,971 points in the previous session. During the intraday trading, the index touched high level of 119,913 points and a low level of 118,772 points. On Friday, BRIndex100 ended at 12,842.51 points, which was 89.17 points or 0.7 percent higher than the previous close with the total volume of 489.356 million shares. BRIndex30 also increased by only 2.57 points or 0.01 percent to settle at 37,794.85 points with the total share trading volume of 79.666 million. Mubashir Anis, analyst at JS Global, credited the market's upward trajectory to improved investor sentiment driven by a stabilizing economic outlook and optimism surrounding the upcoming federal budget. He noted that this positive sentiment translated into a robust and broad-based rally throughout the trading session, with healthy participation from across key sectors. The total volume of the traded shares declined to 580.318 million on Friday as compared to 741.654 million shares on Thursday. While the traded value also declined to Rs 22.743 billion on Friday from Rs 23.911 billion on the last trading day. However, the overall market capitalization saw an increase of Rs 77 billion, reaching to Rs 14.503 trillion on Friday, compared to Rs 14.426 trillion on Thursday. Out of 474 actively traded companies, share prices of 259 companies rose, 161 declined, while 54 remained unchanged. Top positive contributions to the index came from FFC, MEBL, HUBC, PKGP, ENGROH and MCB, as they cumulatively contributed 668 points to the index. Among the top traded companies, WorldCall Telecom. ranked first with 79.666 million shares closing at Rs 1.37, followed by K-Electric Ltd, of which 47.700 million shares were traded and it closed at Rs 5.32. Cnergyico PK ranked third and closed at Rs 7.86 with 35.756 million shares turnover. PIA Holding Company LimitedB recorded the highest gains increase by Rs 2,670.41 and closed at a new high of Rs 29,374.54 followed by Khyber Textile Mills Limited whose share price value closed at Rs 2,790.71, up by Rs 253.70. Moreover, Rafhan Maize Products Company Limited and Sapphire Fibres Limited faced prominent losses with share values decreased by Rs 147.42 and Rs 61.74 respectively to close at Rs 9,960.91 and Rs 1,011.89. Meanwhile, BR Automobile Assembler Index closed at 21,287.33 points with a net negative change of 81.64 points or 0.38 percent with the total turnover remaining 3.613 million shares. BR Cement Index gained 90 points or 0.88 percent to settle at 10,317.36 points with a total turnover of 58.092 million. BR Commercial Banks Index closed at 34,990.77 points up by 291.51 points or 0.84 percent with a total turnover of 23.827 million shares. Meanwhile, BR Power Generation and Distribution Index ended at 20,362.78 points with a net positive change of 355.49 points or 1.78 percent with total turnover of 54.752 million shares. BR Oil & Gas Index closed at 11,508.64 points with a net negative change of 0.35 points on 26.888 million shares turnover. While BR Technology & Communication Index finished at 5,022.77 points marking a negative change of 26.32 points or 0.52 percent, with total turnover of 127.320 million shares. In its commentary, Darson Securities Ltd reported that the Pakistan Stock Exchange (PSX) experienced a range-bound trading session amid mixed investor sentiment driven by uncertainties surrounding upcoming Federal Budget. Despite an initial decline, buyers quickly asserted themselves, propelling the index by marking a gain of 942.47 points. While, Ahsan Mehanti of AHL said stocks closed bullish led by blue chip scrips in oil, banking and fertilizers sector amid hopes for positive federal budget announcements. Budgetary relief for oil refineries, real estate, agri-sector, proposed levy of 1.5pc tax on imports to support industries and rupee stability played a catalyst role in bullish close at PSX, he added. Copyright Business Recorder, 2025
Business Recorder
27-05-2025
- Business
- Business Recorder
After historic lows, inflation expected to tick up in Pakistan
Following a 0.3% YoY reading in April, Pakistan's headline inflation is expected to inch up to 2.7% in May, as per a report by brokerage house JS Global. Pakistan's headline inflation clocked in at 0.3% on a year-on-year basis in April 2025, a reading below that of March 2025 when it stood at 0.7%, showed Pakistan Bureau of Statistics (PBS) data. 'Pakistan's Consumer Price Index (CPI) is expected to clock in at 2.7% for May. The base effect is now fading, signalling a return to normalised price trends. This is likely to take 11MFY25 average inflation to 4.7%, down from 11MFY24 average of 24.9%,' said JS Global. It may be noted that the inflation reading in Pakistan rose to a record 38% on a year-on-year basis in May 2023, the highest level since data was made available beginning in July 1965. As per JS Global, food inflation for May is expected to rise 1.4% on a YoY basis, which was -0.2% last year, owing to the dissipation of the base effect. 'Housing, gas and electricity are projected to post a 3.3% YoY decline and a 2% MoM decrease in May-2025, primarily due to a reduction in electricity tariffs during the month.' Meanwhile, core inflation is expected to clock in around 9% YoY in April. On policy rate, the brokerage house noted that the State Bank of Pakistan (SBP) reduced the key interest rate by 100bps to 11% in the last Monetary Policy Committee (MPC) meeting, mainly influenced by declining inflation. This marked the seventh rate cut in the ongoing monetary easing cycle, bringing the cumulative reduction to 1,100bps from its peak of 22%. 'We believe that based on the lower-than-expected inflation readings thus far, a further cut in rates cannot be ruled out,' the brokerage house said. The central bank is scheduled to meet on 16th June 2025 for its next MPC meeting.
