Pakistan’s inflation eased to 5.6 percent in December 2025, down from 6.1 percent in November and below market expectations.
Bloomberg, a leading global authority on financial data and market analysis, has released a fresh review of Pakistan’s economy, confirming a notable decline in inflation alongside improving policy stability.
According to the report, Pakistan’s inflation eased to 5.6 percent in December 2025, down from 6.1 percent in November and below market expectations.
Pressure on food prices also moderated, with food inflation contained at 3.24 percent, pointing to visible relief for consumers.
Bloomberg noted that price stability and easing inflation have boosted confidence among investors and business circles, while also reinforcing the credibility of the government’s policy direction.
Reflecting the improved macroeconomic environment, the State Bank of Pakistan lowered the policy rate to its lowest level in nearly three years. The 50 basis point cut signaled that price pressures are increasingly under control.
The report added that lower interest rates are expected to make financing more favorable for businesses and investors, sending positive signals for the overall investment climate.
Easing inflation has also improved consumers’ purchasing power, increasing prospects for broader public relief.
According to Bloomberg, December’s data indicates that policy measures are beginning to deliver results, with the sustained downward trend in inflation pointing toward medium-term economic stability and stronger governance foundations.
