Pakistan Inflation Rate Eases for 3rd Month

Pakistan’s annual inflation rate eased to 9.6% in October 2026 from 10.3% in September, marking a third consecutive monthly decline. Still, inflation remained well above the State Bank of Pakistan’s 5%-7% target range, as elevated oil prices continued to cloud the outlook amid the country’s heavy reliance on imported energy. Price pressures moderated for housing and utilities (11.03% vs. 12.39%), clothing and footwear (9.19% vs 8.98%), communication (13.41% vs 13.54%) and restaurants and hotels (6% vs 6.1%). Food inflation also eased (7.74% vs. 8.2%), while perishable food prices fell 2.35%, following a sharp 11.78% increase in the previous month. In contrast, inflation accelerated for non-perishable food items (9.55% vs. 7.64%), keeping food inflation elevated. Price growth in transports quickened further to 28.61% from 27.43%. On a monthly basis, consumer prices rose 1.1%, easing from a 1.3% increase in September.

Pakistan's annual inflation rate eased to 10.3% in September 2026 from 11.1% in August, remaining well above the State Bank of Pakistan's 5%-7% target range. The slowdown was mainly driven by food inflation, which slowed sharply to 8.2% from 13.9%, as price growth softened for both non-perishable (7.6% vs 12.3%) and perishable food items (11.8% vs 24.9%). Inflation also eased for miscellaneous goods and services (10.9% vs 12.2%), clothing and footwear (9.0% vs 9.2%), health (7.9% vs 8.0%), communication (13.5% vs 13.6%), and alcoholic beverages and tobacco (3.0% vs 3.2%). In contrast, upward pressure came from transport (27.4% vs 20.2%) and housing and utilities (12.4% vs 8.9%), amid higher fuel and electricity costs. Inflation also edged up for furnishing and household equipment (7.2% vs 7.1%) and recreation and culture (0.6% vs 0.5%), while it was steady for restaurants and hotels (6.1%). On a monthly basis, consumer prices rose 1.3% in September, after a 1.2% increase in August.

Pakistan’s inflation rate rose by 11.15% year-on-year in August 2026 from a four-month low of 9.20% in the previous month, remaining well above the State Bank of Pakistan’s 5%-7% target range. Costs increased for food and non-alcoholic beverages (13.89% vs 10.64% in July), alcoholic beverages and tobacco (3.20% vs 3.19%), clothing and footwear (9.23% vs 9.18%), housing and utilities (8.87% vs 7.14%), furnishing and household equipment (7.08% vs 6.92%), health (8.02% vs 7.80%), transportation (20.17% vs 15.08%), restaurants and hotels (6.10% vs 5.71%), and miscellaneous goods and services (12.15% vs 10.80%). Meanwhile, price growth slowed for recreation and culture (0.48% vs 1.25%) and education (7.82% vs 9.00%). On a monthly basis, consumer prices grew by 1.2% in August, matching the pace from the preceding period.