Pakistan’s inflation decelerated to 20.68% YoY in March, marking the third month of easing, down from 23.06% in February. This slowdown, attributed to record borrowing costs dampening economic growth and domestic demand, supports the central bank’s decision to maintain its benchmark interest rate at a record high. Economic growth softened in the Q2 FY24-25, with a 1% GDP expansion as the industrial sector contracted. Food costs and transport prices saw increases, while housing costs jumped by 36.60%.