Inflation in Pakistan may ease to 4% in Aug: report
Inflation in Pakistan is projected to settle between 3.75% and 4.25% in August 2025, according to a report by Topline Securities, a private economic think tank.
The monthly increase is expected to be modest at 0.3%, reflecting signs of stability compared to last year’s double-digit price hikes.
The report highlights that inflation stood at 4.07% in July 2025, while in August last year it was 9.63%. Looking ahead, Topline Securities expects the annual inflation rate to range between 6% and 7% by the end of the current financial year, broadly aligning with the State Bank of Pakistan’s forecast of 5% to 7%.
With price pressures easing, the think tank noted that the central bank has room to cut the policy rate by 50 to 100 basis points in the coming months. It further projected that the interest rate could decline to 10% by December 2025, potentially lowering borrowing costs for businesses and households.
