Pakistan inflation slows to 5.6% in December

A shopkeeper sells spices at a market in Lahore on June 10, 2025. (AFP/File)
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Updated 01 January 2026
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Pakistan inflation slows to 5.6% in December

  • Falling prices of perishable food items drove a monthly decline
  • Central bank warns inflation may rise again later this fiscal year

KARACHI: Pakistan’s consumer price inflation slowed to 5.6% year-on-year in December, while prices fell on a monthly basis, official data showed on Thursday.

The data comes after Pakistan’s central bank cut its key policy rate by 50 basis points to 10.5% last ‌month, breaking a four-meeting ‌hold, in a move ‌that ⁠surprised ​markets. ‌All analysts polled by Reuters had expected rates to remain unchanged at the December meeting.

Inflation eased from 6.1% in November and marked a sharp slowdown from levels that peaked above 30% in 2023, according to official data.

Lower prices of perishable food ⁠items helped drive the monthly decline, the Pakistan Bureau of ‌Statistics said, with food prices falling ‍1.7% month-on-month in ‍December, led by declines in both urban and ‍rural areas.

The finance ministry had said on Wednesday that inflation was expected to remain moderate at 5.5%–6.5% in December.

The State Bank of Pakistan has said ​inflation stayed within its 5%–7% target range during the July–November period but warned that ⁠core inflation remains sticky and headline inflation could rise temporarily toward the end of this fiscal year, which ends in June, due to base effects.

Non-food inflation remained elevated in both urban and rural areas in December, underscoring the central bank’s concerns over persistent underlying price pressures.

The central bank has said the inflation outlook remains broadly unchanged, while the International Monetary Fund has cautioned against ‌premature monetary easing under Pakistan’s $7 billion loan program.


Pakistan assembly speaker warns opposition against anti-state remarks in parliament

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Pakistan assembly speaker warns opposition against anti-state remarks in parliament

  • Ayaz Sadiq says criticism of judiciary and armed forces will not be allowed on assembly floor
  • He calls violence during protests unacceptable, vows neutrality as National Assembly speaker

ISLAMABAD: Pakistan’s National Assembly Speaker Sardar Ayaz Sadiq said on Saturday that opposition lawmakers would not be allowed to speak against Pakistan, the judiciary or the armed forces on the floor of parliament, calling such remarks unacceptable.

Speaking to reporters during a visit to the eastern city of Lahore, Sadiq said parliamentary debate must remain within constitutional and legal limits, while reiterating his commitment to act impartially as speaker.

“No one will be allowed to speak against Pakistan, the judiciary or the armed forces on the floor of the National Assembly,” Sadiq said. “Negative or controversial remarks about judges or the armed forces are unacceptable.”

His comments come amid heightened political tensions after opposition groups held protests in the past, criticizing state institutions and targeting government and military properties.

The speaker said peaceful protest was a democratic right but drew a sharp line at violence and vandalism.

“Protest is the right of every citizen in a democratic society, but it must remain peaceful and within the bounds of the constitution and the law,” he continued, adding that arson, damage to property and the use of sticks or weapons in the name of protest were “unacceptable” and posed a threat to the rule of law.

“No opposition lawmaker will be allowed to speak on the National Assembly floor if they speak against Pakistan,” Sadiq said.

The speaker also noted the country’s economic indicators were gradually improving, citing an increase in foreign exchange reserves, and said Pakistan had further strengthened relations with countries including the United States, China, Russia, Türkiye and Saudi Arabia.