Inflation Cools Down to 9.2%, But Risks Remain
Headline inflation in Pakistan has cooled down to 9.2% in July 2026, after crossing 10% for three consecutive months of the previous quarter.
This is lower than 11.1% recorded in June, but higher than analysts' expectations, with a month-on-month increase of 1.2% despite a decline in energy prices.
The main drivers of inflation were food items, particularly tomatoes and wheat, which saw abnormal increases.
Tomato prices rose by 117% month-over-month in urban areas, while fresh vegetable prices increased by 22%, resulting in a 4.2% rise in the food price sub-index for July.
The year-on-year increase in food prices stood at 10.6%, with perishable items rising by 17.7% and non-perishable items by 2.3% month-over-month.
Wheat prices were another concern, increasing by 72% year-over-year due to the Punjab government's premature release of its own stocks during the harvest season.