Pakistan Inflation Eases to 10.3%, But Energy Costs Remain High

Pakistan's inflation rate has eased to 10.3% in September 2026, down from 11.1% in August, but remains above the government's projections.

The Pakistan Bureau of Statistics reported that consumer prices rose 1.3% month-on-month in September, with food inflation declining substantially to 8.1% in cities and 7.7% in rural areas.

However, energy-related inflation moved in the opposite direction, reaching 11.5% in urban areas and 13.1% in rural areas, driven by a 39% year-on-year increase in petrol prices and a 33% rise in electricity costs.

The government has told the International Monetary Fund that inflation could average around 7.5% during the fiscal year if global conditions stabilize and Brent crude averages about USD 80 per barrel, but estimates annual inflation could reach 8.2% if oil prices remain near USD 100 through December.