Pakistan’s inflation rate eased slightly to 10.3 percent in September 2026, but higher fuel and electricity costs continued to keep pressure on household budgets.
Data released by the Pakistan Bureau of Statistics (PBS) on Thursday showed that the Consumer Price Index (CPI) rose 10.3 percent year-on-year in September, down from 11.1 percent in August. Inflation stood at 5.8 percent in September 2025.
On a monthly basis, prices increased 1.3 percent in September, compared with 1.2 percent in August and 2.1 percent in the same month last year.
Inflation also eased in both urban and rural areas. Urban inflation fell to 10.1 percent year-on-year from 10.4 percent in August, while rural inflation dropped to 10.5 percent from 12.2 percent.
However, prices continued to rise during the month. Urban inflation increased 1.3 percent month-on-month, while rural inflation rose 1.2 percent.
The average inflation rate during the first quarter of the ongoing fiscal year reached 10.2 percent, sharply higher than the 4.3 percent recorded in the same period last year.
The latest reading was broadly in line with market expectations. Several brokerage houses had projected September inflation at between 9.9 percent and 10.5 percent, with higher fuel and electricity costs expected to keep price pressures elevated.
The Finance Division had also forecast inflation at 10 to 11 percent for September in its monthly Economic Update and Outlook. It said the future path of inflation would depend heavily on international oil prices.
The government has identified rising global oil prices as a key risk because they can raise household expenses, increase business costs and push up the country’s import bill.
The Finance Division also noted that higher government spending and interest payments lifted the consolidated fiscal deficit to Rs596.6 billion in July 2026.
It said the Prime Minister’s Fuel Relief Scheme aims to support lower-income households through digital payments while keeping the petroleum levy intact.
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