Country: Pakistan Source: World Food Programme Please refer to the attached file. HIGHLIGHTS March The Consumer Price Index (CPI)-based annual headline inflation increased to 7.3 percent (YoY), up from 6.9 percent in February. On a month-on-month basis the CPI increased by 1.2 percent in March compared to February, reflecting higher transport, utility, and perishable food costs. Annual food inflation increased by 3.6 percent (YoY) compared to March 2025, indicating that households paid nearly 4 percent more for food items, slightly impacting food expenditure of lower-income households. Likely drivers for annual food inflation include rising input costs, higher transportation expenses, and seasonal fluctuations. Prices of wheat and fine wheat flour in March were slightly lower compared to February, while rice prices largely remained stable, reflecting adequate supply conditions. The monthly terms-of trade (ToT) for unskilled labourers increased by 3 percent to 12 kg of wheat flour due to lower flour prices, offering a slight short‑term relief. However, a 20 percent year‑on‑year decrease in ToT reflects a significant loss in purchasing power and continued pressure on household food access.