Inflation dynamics across South Asia and the broader region presented a mixed picture over the past year., reflecting a combination of domestic policies, global supply shifts, and geographical pressures. A snapshot of inflationary trends in Pakistan, India, Bangladesh, Sri Lanka and Iran have revealed diverse challenges and recovery paths.
Pakistan experienced a sharp decline in inflationary trends, as per information available from the secured official documents, with inflation falling from a peak of 20.7 percent in March 2024 to just 0.3 percent in April 2025.This remarkable slowdown has reflected a combination of the right monetary policy, improved food supply conditions, and a high base effect.. Quite obviously, easing of inflation was a welcome relief for households and businesses at large across the country.
India maintained moderate and stable inflation, hovering between 3.3 percent and 6.2 percent throughout the year. India’s central bank’s inflation-targeting regime appeared to have anchored expectations quite effectively. However , mild fluctuations were largely driven by the seasonal food prices and global oil price movements. India’s inflation stability has as such stood out in the region and supported its continued economic resilience.
Bangladesh continued to face persistent inflation, with rates staying in the 9.0 percent to 11.7 percent range. Structural pressures , including currency depreciation , elevated import costs, and energy price adjustments.
URAAN Pakistan (National Economic Transformation Plan) initiative had also supported price stability by reducing production costs through energy sector reforms and promoting export-led growth which duly helped in strengthening the currency and lowering import-driven inflation. These measures, combined with fiscal discipline and structural reforms had also helped in stabilizing the prices and building the investors confidence
contributed to its sticky inflation. Despite policy efforts, inflation continued to be a concern for vulnerable groups, particularly in the urban and lower-income households.
Sri Lanka exhibited a rather rare inflationary trend, especially from September 2024 to April 2025, with inflation dipping to -2.0 percent in April 2025. This reflected the deep impact of ongoing fiscal consolidation and demand suppression following the country’s recent economic crisis.
On the other hand, Iran continued to grapple with its elevated inflation, with rates consistently remaining above 30 percent, peaking at 37.1 percent in March 2025. Sanctions, currency depreciation, and structural bottlenecks in supply chains contributed to these persistently high levels. Inflation as such continues to remain a serious challenge for the Iranian economy, undermining the country’s purchasing power and creating uncertainty for long-term investment
Annual inflation in March 2024 in Pakistan was 20.7 percent, India 4.9 percent, Bangladesh 9.8 percent, SRi Lanka 0.9 percent and Iran 32.3 percent.
In December 2024, inflation in Pakistan was 4.1 percent, India 5.2 percent, Bangladesh 10.9 percent, Sri Lanka -1. 7 percent and Iran 31.4 percent. In April 2025, inflation in Pakistan 0.3 percent , India 3.2 percent, Bangladesh 9.2 percent, Sri Lanks -2.0 percent and data for Iran was not available.
According to the information gathered from the official sources, FY2025 had witnessed a significant decrease in inflation in Pakistan which duly reflected the tireless efforts of the incumbent federal government to tackle this somewhat complex issue which had created sort of uncertainties and affected the households and businesses alike across the country.
By implementing the administrative, relief, and policy measures, the federal government had quite successfully stabilized prices and also ensured food and energy affordability for the masses at large . As such, the Consumer Price Index (CPI) inflation had decreased to 4.7 percent during July-April FY2025, quite appreciably from 26.0 percent in the same period the previous year.
The drop in inflation from 23.4 percent in FY2024 and 29.2 percent in FY2023 was a testimony to the federal government’s effective strategy. These efforts had duly demonstrated the firm commitment of the federal government for improving the citizens’ lives and also fostering a stable macroeconomic environment in the country.
The official sources claimed that this remarkable decline was the direct result of the incumbent government’s balanced policy framework, which was effectively combined with fiscal discipline, targeted interventions by the State Bank of Pakistan and exchange rate stability. Despite various external factors which continued to contribute to inflation, the federal government ‘s concerted efforts had mitigated these pressures, thereby bringing much-needed relief to the people at large throughout the country. The official sources concludingly also emphatically pointed out that this sharp decline in inflation in Pakistan could also be attributed to several factors, including improved food availability, decreased energy prices, and excess production capacity. The easing of inflation was also reported to be influenced by the decline in commodity prices globally, primarily driven by improved energy supplies and food.
Furthermore, URAAN Pakistan (National Economic Transformation Plan) initiative had also supported price stability by reducing production costs through energy sector reforms and promoting export-led growth which duly helped in strengthening the currency and lowering import-driven inflation. These measures, combined with fiscal discipline and structural reforms had also helped in stabilizing the prices and building the investors confidence.
