ISLAMABAD: Pakistan’s headline inflation is projected to reach about 5.1 percent in September 2025, up from 3.0 percent in August, driven largely by a surge in food prices, brokerage firm Insight Securities said in a research note on Monday.
The estimate, compared with 6.9 percent in the same month last year, comes as Pakistan is pushing through a series of economic reforms under a $7 billion International Monetary Fund program, including a contractionary government budget passed in June that slashes spending to curb the fiscal deficit.
Inflation has fallen sharply from a record 37.97 percent in May 2023, when global commodity shocks, energy price hikes and currency depreciation sent prices soaring. By late 2024 and early 2025, headline inflation had fallen into single digits on monthly measures, aided by tight monetary policy, base effects and external stabilization efforts.
“Preserving macroeconomic stability and keeping the current account deficit within a manageable level of less than 1 percent of GDP is essential,” Insight Research said in a note on Monday.
“Although the evolving diplomatic landscape may provide a ramp for growth, the priority for now should be to consolidate stabilization before pursuing a growth path.”
