Pakistan Inflation Rate Accelerates in March

The annual inflation rate in Pakistan rose to 7.3% in March 2026, up from 7% in February. This marks the highest level since August 2024, falling out of the State Bank of Pakistan's 5-7% range. Upward price pressures were mainly due to transport (12.5% versus 0.4%) and housing and utilities (11.5% versus 9.7%). In contrast, price increases slowed for food and non-alcoholic beverages (3.6% versus 5.8%). On a monthly basis, consumer prices increased 1.2%, up from 0.3% in the previous month.

Pakistan’s year-on-year inflation climbed to 5.8% in January 2026, up from 5.6% in December, staying within the State Bank of Pakistan’s 5–7% target range and the Ministry of Finance’s forecast of 5–6%. Price increases accelerated for food and non-alcoholic beverages (3.90% vs 3.24%), housing and utilities (7.29% vs 6.86%), and miscellaneous goods and services (20.97% vs 19.26%), while transport inflation eased to 2.61% from 4.94%. On a monthly basis, consumer prices rose 0.4%, rebounding from a 0.4% decline in December.

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%).