Pakistan’s inflation edged up slightly in January 2026, suggesting that the slowdown seen late last year has lost some momentum.
Data released by the Pakistan Bureau of Statistics on Tuesday showed headline Consumer Price Index inflation rose to 5.8 percent year on year in January. This was higher than 5.6 percent in December 2025 and far above the 2.4 percent recorded in January last year.
Prices also increased on a monthly basis. Inflation rose by 0.4 percent in January, reversing a decline of the same size recorded in December. This points to fresh pressure on household budgets at the start of the year.
Despite the recent rise, average inflation for the first seven months of the current financial year remained lower than last year. From July to January, CPI inflation averaged 5.24 percent, compared with 6.6 percent during the same period a year earlier.
In cities, inflation stayed unchanged at 5.8 percent on an annual basis. This was higher than the 2.7 percent seen in January 2025. Urban prices rose 0.2 percent over the month, after falling in December. In rural areas, inflation climbed to 5.8 percent from 5.4 percent in the previous month. Rural prices increased by 0.6 percent on a monthly basis, showing a sharper rebound than in cities.
The Sensitive Price Index, which tracks the cost of essential items, rose 3.3 percent from a year earlier. This was higher than both December and January last year. On a monthly basis, however, SPI fell by 0.8 percent, the same decline recorded a month earlier.
At the wholesale level, price pressure remained weak. Wholesale Price Index inflation slowed to 0.2 percent year on year in January. Wholesale prices also fell 0.2 percent during the month, following a larger drop in December.
Core inflation showed mixed signals. In urban areas, non-food non-energy inflation rose to 7.2 percent, though it stayed below last year’s level. Rural core inflation remained higher at 8.3 percent but was much lower than a year ago. Other core measures suggested easing pressure, particularly in trimmed mean inflation for both urban and rural areas.
Overall, the figures show that inflation picked up again in January after easing in December. While prices are rising faster than a year ago, weak wholesale inflation suggests that broader price pressure remains contained for now.
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