Pakistan Inflation Rate Slows in June

Pakistan's annual inflation rate eased to 11.0% in June 2026 from a two-year high of 11.7% in May, and in line with the government's forecast range of 11%-12%. The slowdown was mainly due to housing and utilities (15.5% vs. 16.1%), while inflation fell sharply for transport (25.7% vs. 39.5%). In contrast, food inflation accelerated to 9.4% from 6.8%, reaching its highest level since April 2024. Although geopolitical tensions have eased, Pakistan remains highly dependent on imported energy, with policymakers expecting energy prices to stay elevated in the near term. On a monthly basis, consumer prices fell 0.3% in June, reversing a 0.5% increase in the previous month.

The inflation rate in Pakistan jumped 11.7% year-on-year in May 2026 from 10.9% in April, remaining well above the State Bank of Pakistan's 5%-7% target range and marking the highest reading since June 2024. Price pressures intensified across several categories, including food and non-alcoholic beverages (7.9% vs. 7.6%), alcoholic beverages and tobacco (2.3% vs. 2.0%), clothing and footwear (8.8% vs. 6.2%), furnishing and household equipment (5.1% vs. 3.8%), and transportation (36.8% vs. 29.9%). Meanwhile, inflation for housing and utilities remained elevated at 16.8%. The increase largely reflects higher energy costs following the Middle East conflict, with petrol and diesel prices still about 48% and 38% above their pre-war levels, respectively. On a monthly basis, consumer prices grew 0.5% in May, easing from a 2.5% rise in the preceding period.

The annual inflation rate in Pakistan rose sharply to 10.9% in April 2026, up from 7.3% in March, remaining well above the State Bank of Pakistan’s target range of 5–7% and near highs last seen in 2024. Price increases were broad-based, with the strongest upward pressures coming from housing and utilities, which climbed to 16.8% from 11.5%, and food and non-alcoholic beverages, which rose to 7.6% from 3.6%. Transport costs saw a steep surge, jumping 29.9% compared to 12.5% in the previous month. On a monthly basis, consumer prices rose 2.5%, marking the fastest pace in nine months and accelerating from 1.2% in March.