Pakistan Inflation Jumps To 11.1% In August

Pakistan’s headline inflation rose to 11.1% year-on-year (YoY) in August 2026, marking a significant increase from 9.2% recorded in July, according to data released by the Pakistan Bureau of Statistics (PBS) on Tuesday.

The Consumer Price Index (CPI) had registered a 3.1% YoY increase in August 2025.

On a month-on-month (MoM) basis, headline inflation remained at 1.2% in August 2026, matching the increase recorded in July. In contrast, CPI inflation had fallen by 0.6% MoM in August 2025.

Inflation accelerated in both urban and rural regions, although the increase was stronger in rural areas.

Urban CPI inflation reached 10.4% YoY in August, compared with 8.7% in July and 3.5% during August last year.

On a monthly basis, urban inflation increased 0.9% in August, easing from 1.2% in July. It had declined by 0.7% during August 2025.

Rural CPI inflation climbed to 12.2% YoY in August, up from 9.9% in July and 2.5% in August 2025.

On a MoM basis, rural inflation rose 1.6% in August, compared with 1.2% in July, while it had recorded a 0.5% decline in August 2025.

The August inflation figure remained broadly within the range projected by the government.

In its monthly economic survey, the government had estimated inflation would stay between 10% and 11% in August, pointing to continued pressure from global commodity and energy prices.

The survey highlighted geopolitical uncertainty and fluctuations in international energy prices as major risks, noting that these factors could also place pressure on Pakistan’s external account.

The government said prudent macroeconomic management and continued reforms would be essential to maintaining stability and sustaining economic activity during fiscal year 2027.

It also emphasised policy discipline and structural reforms as key to achieving sustainable and inclusive growth, strengthening the economy against external shocks and safeguarding recent improvements in macroeconomic stability.