Inflation Remains High After 3 Months

Pakistan's headline inflation slowed to 10.26 percent in September 2026, down from 11.15 percent in August, according to data published by the Pakistan Bureau of Statistics (PBS).

Key points

• This takes 1QFY27 CPI to 10.20 percent, up 2.5x vs 1QFY26 CPI of 4.30 percent.
• Urban inflation rose 10.4 percent year-on-year (YoY) in August, compared with 8.7 percent in July and 3.5 percent in August 2025.
• Sensitive Cost Indicator (SPI) inflation rose 9.5 percent YoY in August, down from 12.0 percent in July but well above 2.6 percent in August 2025.
• Wholesale Cost Index (WPI) inflation climbed 11.8 percent YoY in August, compared with 9.4 percent in July and a 1.0 percent decline in August 2025.
• The September 2026 inflation is significantly higher than the 5.76 percent recorded in September 2025.

For context, the September 2026 inflation is significantly higher than the 5.76 percent recorded in September 2025.

In practice, the September reading was in line with the Bloomberg survey estimate of 10.2 percent. Senate Panel Recommends Cashless Health Insurance for Employees.

Core inflation additionally eased slightly to around 8.6 percent in September from 8.8 percent in August, but remained above the 7.0 percent recorded a year earlier.

Notably, the September reading takes average Consumer Cost Index (CPI) inflation during the first quarter of fiscal year 2026-27 (1QFY27) to 10.20 percent, compared with 4.30 percent in 1QFY26.

On a month-on-month (MoM) basis, inflation in September rose by 0.3 percent, compared with a 1.2 percent rise in August.

Urban inflation rose 10.4 percent year-on-year (YoY) in August, compared with 8.7 percent in July and 3.5 percent in August 2025. On a MoM basis, urban inflation rose 0.9 percent in August.

Rural inflation rose 12.2 percent YoY in August, compared with 9.9 percent in July and 2.5 percent a year earlier. On a MoM basis, rural inflation rose 1.6 percent.

Sensitive Cost Indicator (SPI) inflation rose 9.5 percent YoY in August, down from 12.0 percent in July but well above 2.6 percent in August 2025. On a MoM basis, SPI rose 0.9 percent in August.

Wholesale Cost Index (WPI) inflation climbed 11.8 percent YoY in August, compared with 9.4 percent in July and a 1.0 percent decline in August 2025. On a MoM basis, WPI rose 2.0 percent.

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Urban non-food, non-energy core inflation rose 8.8 percent YoY in August, compared with 8.6 percent in July and 6.9 percent in August 2025. Rural non-food, non-energy inflation rose 8.5 percent YoY, compared with 8.1 percent in July and 7.8 percent a year earlier.

While the rural reading stood at 9.1 percent, the 20 percent weighted trimmed mean measure indicated urban core inflation at 8.9 percent YoY in August. Stay Connected with ProPakistani.

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Taken together, the developments around inflation Remains High After 3 Months point to a situation that is still moving, and the coming days should bring more clarity.