ISLAMABAD: Pakistan’s annual inflation eased to 11.1% in June 2026, down from 11.7% in May, according to data released by the Pakistan Bureau of Statistics (PBS) on Wednesday. The consumer price index (CPI) had stood at 3.2% in June 2025.
On a monthly basis, inflation declined by 0.3% in June, reversing a 0.5% increase recorded in May. In comparison, prices had risen 0.2% month-on-month in June last year.
For the fiscal year 2025-26, average inflation stood at 7.05%, compared with 4.49% during the previous fiscal year.
Brokerage firm Arif Habib Limited (AHL) said the year-on-year rise in inflation was mainly driven by higher energy and transportation costs, reflecting increased global oil prices amid geopolitical tensions.
Urban inflation slowed to 11.2% in June from 11.8% in May, while monthly urban prices fell 0.5% after rising 0.7% a month earlier. In rural areas, annual inflation eased to 10.9% from 11.5%, while prices remained unchanged on a monthly basis.
The Ministry of Finance, in its latest monthly economic outlook, said easing geopolitical tensions in the Middle East have improved global market sentiment, leading to a decline in international crude oil prices. The government expects lower oil prices to reduce imported inflation, ease domestic fuel and transport costs, and help contain the country’s oil import bill.
The ministry had projected inflation to remain within the 11-12% range for June.
Last month, the State Bank of Pakistan’s Monetary Policy Committee kept the benchmark policy rate unchanged at 11.5%, saying inflation is likely to remain in double digits over the coming months before gradually moderating.
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