Pakistan’s inflation rate rose to its highest level in nearly two years during May 2026, reaching a 23-month peak and raising concerns over growing price pressures in the economy ahead of the new fiscal year.
According to the latest monthly report issued by the Pakistan Bureau of Statistics (PBS), inflation increased by 0.52% on a month-on-month basis compared to April 2026. The report noted that this is the highest level recorded since June 2024, reflecting a renewed upward trend in consumer prices.
On a year-on-year basis, inflation surged to 11.66% in May 2026, marking a significant increase compared to 3.5% recorded in the same month last year (May 2025). The sharp rise highlights continued pressure on household budgets as essential goods and services become more expensive across the country.
The report further showed that inflation in April 2026 stood at 10.89%, indicating a continued acceleration in price levels over the past two months. Economists say the persistent rise suggests that inflationary pressures are becoming more widespread rather than limited to specific commodities.
For the ongoing fiscal year, average inflation during the first 11 months (July 2025 to May 2026) stood at 6.69%, reflecting an overall upward trend in prices throughout the year.
The rising inflation has triggered concerns about purchasing power, especially for low- and middle-income households already affected by high utility costs and food prices. Analysts warn that without strong economic stabilisation measures, inflation could remain volatile in the coming months, further challenging economic recovery efforts.
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