Electricity, Gas, and Groceries? Inflation’s Back in Pakistan and It’s Hitting Hard

The Pakistan Bureau of Statistics (PBS) has already released the new inflation numbers for the month of July 2025, and the increase in inflation was by 2.9 percent on a monthly basis compared to the June 2025 inflation. Compared with July 2024, the inflation of July 2025 increased year-on-year by 4.1 percent.

In the research, the PBS affirmed that the principal factors that led to an escalation of inflation were higher electricity, gas, and fuel rates. The increase in cost of household utilities was the most pronounced followed by transport cost as well as food cost.

In June 2025, the annual inflation rate was recorded at 3.2%. However, after dropping below 1% in April 2025, inflation has been on the rise again since May, mainly due to energy price hikes.

In September 2023, inflation in Pakistan had reached 30%, before gradually declining over the following months. The trend reversed post-April 2025.

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