Pakistan Economy: Dec’25 CPI likely to clock in at 5.8% - By Insight Research
Dec 31 2025
Insight Securities
- Headline inflation is estimated at ~5.8% for Dec’25, compared to ~4.1% in SPLY and ~6.2% in preceding month. On MoM basis, inflation is expected to fell by ~0.2%. The decline is primarily led by softer food prices, in line with seasonal trend. To highlight, food basket is expected to record a MoM decline of ~1.5%. While, higher Policy rate vs. Inflation 45% 40% 35% 30% LPG price is likely to lift housing index by ~0.4% MoM. This will take 6MFY26 average inflation to 5.2% compared to 7.3% in SPLY. Core inflation is likely to remain sticky at 7.1% and 8.3% for urban and rural baskets, respectively.
- Within the SPI basket, items that recorded significant increase in prices during the period are as follows, LPG (14.9↑%), Cooking oil (3.1↑%), Eggs (2.2%↑), Chicken (2.1%↑) & Vegetable ghee (1.8%↑). On the flip side, prices of the following items eased off during the month, Tomatoes (51.7%↓), Onions (30.7%↓), Potatoes (18.8%↓), Sugar (9.0%↓) & Pulse gram (3.9%↓).
