The State Bank of Pakistan has warned that the country’s annual inflation rate rose to 4.07% in July 2025, reaching a 7-month high. In June, it was 3.2%, and this is the highest level since December 2024.
According to details, the increase in inflation was due to rising housing and utilities prices. The State Bank stated that the increase in food prices remained slow. Inflation in urban areas was 4.4%, while in rural areas it was 3.5%.
Compared to July last year, the inflation rate showed a clear decline but concerns remain. In the same month last year (July 2024), the rate was 11.09%.
The main reason behind this rapid increase in inflation is the renewed rise in housing and utility prices, which had decreased by 3.28% in June but rose by 3.56% in July. Similarly, transportation costs also increased — from 0.6% last month to 2.7% now.
It is worth noting that due to inflation, changes are being observed in the daily routines of the middle class. A large number of people now avoid attending unnecessary events and social activities.
Inflation-stricken citizens believe that it has become difficult to meet daily necessities. In such circumstances, staying away from events and social gatherings is becoming inevitable.
