
Pakistan’s inflation rate dropped to 0.28% in April 2025 — the lowest level in 60 years — driven by falling food, transport, and utility costs. The Consumer Price Index saw a sharp decline from 17.34% in April last year, while core inflation eased to 7.4%. Urban and rural inflation stood at just 0.5% and 0.10% respectively. Experts credit policy measures like the Rs. 7.41/unit cut in electricity tariffs and now urge the State Bank to slash the policy rate, warning that high real interest rates may hinder economic recovery.