Inflation climbs to 3.5pc for May

Headline inflation rose 3.5 per cent year-on-year in May 2025, according to data released by the Pakistan Bureau of Statistics (PBS) on Monday. On a month-on-month basis, it decreased by 0.2pc in May as compared to a decrease of 0.8pc in the previous month, according to data. This was higher than the finance ministry’s expectations, which had anticipated inflationary outlook to “remain between 1.5-2.0pc in May, with a possible rise to 3.0-4.0pc by June”. The finance ministry had depicted a cautious outlook towards growth in Large-Scale Manufacturing (LSM), presenting a rising trajectory for inflation during May and June. Topline Securities, in a note, said that inflation during 11MFY25 had averaged at 4.61pc compared to 24.52pc in 11MFY24.