Pakistan’s consumer inflation rose sharply in September 2025, breaking a months-long trend of easing price pressures. According to official data, the Consumer Price Index (CPI) climbed to 5.6 percent year-on-year, compared to 3.0 percent in August and 6.9 percent in the same month last year.
On a monthly basis, CPI increased by 2.0 percent in September, reversing the 0.6 percent decline recorded in August. The jump highlights renewed risks in food and energy costs, which remain the most sensitive drivers of inflation across urban and rural markets.
During the first quarter of FY26, average inflation stood at 4.22 percent — almost half the 9.2 percent recorded in the same period last year. The earlier decline had been attributed to a stronger rupee and tighter monetary policy. However, the September rebound suggests that inflationary challenges may not be fully under control.
Urban inflation reached 5.5 percent in September, compared to 3.4 percent a month earlier, while rural inflation surged to 5.8 percent — more than double the previous pace. The Sensitive Price Index, tracking essential commodities, rose by 4.5 percent annually, whereas the Wholesale Price Index registered only a modest 0.6 percent rise.
Economists warn that the latest figures could complicate the State Bank of Pakistan’s upcoming monetary policy review, forcing a delicate balance between growth and inflation control.
