Pakistan inflation rate nearly doubles in a year

Pakistan’s headline inflation stood at 10.3% year-on-year in September 2026, down from 11.1% in August but nearly double the 5.8% recorded in September last year, according to the Pakistan Bureau of Statistics.

On a month-on-month basis, urban CPI inflation rose by 1.3% in September, compared to a 0.9% increase in August, while rural CPI inflation increased by 1.2%, compared to a 1.6% increase in the previous month.

Consumer Price Index (CPI) is a statistical measure used to track changes over time in the prices of goods and services consumed by households, including food, clothing, housing and medical care. It is widely used as a measure of consumer inflation or deflation in an economy. 

A rising CPI indicates that consumer prices are increasing, which can reduce people’s purchasing power if their incomes do not rise at the same pace.

The US-Iran war has disrupted Gulf energy supplies and shipping through the Strait of Hormuz, a critical route connecting oil-producing countries to global markets.