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Pakistan’s annual inflation eased to 5.6% in December 2025 from 6.1% in November, marking the lowest reading since August. The slowdown was mainly driven by softer food price pressures, with inflation for food and non-alcoholic beverages decelerating (3.2% vs 5.5% in November). This reflected a sharper decline in perishable food prices (-17.8% vs -3.7%), which more than offset a slight pickup in inflation for non-perishable food items (7.5% vs 7.3%). Price growth also moderated for clothing and footwear (6.2% vs 6.5%), furnishings and household maintenance (3.4% vs 3.5%), and health (7.7% vs 8.3%). Costs fell for restaurants and hotels (5.6% vs 5.3%), while prices continued to decline for recreation and culture (-4.3% vs -4.1%). In contrast, inflation accelerated for housing and utilities (6.9% vs 5.3%). On a monthly basis, consumer prices fell 0.45% after rising 0.4% in November. Annual inflation slowed in both urban areas (5.8% vs 6.1%) and rural regions (5.4% vs 6.3%).