Pakistan’s annual inflation rate slowed to 9.6% in October 2026, down from 10.3% in September, marking the third consecutive month of easing price growth. However, inflation remained well above the State Bank of Pakistan’s target range of 5%–7%, as persistently high global oil prices continued to weigh on the outlook, given the country’s heavy dependence on imported energy.
Price pressures softened in several major categories, including housing and utilities (11.03% vs. 12.39% in September), clothing and footwear (9.19% vs. 8.98%), communication (13.41% vs. 13.54%), and restaurants and hotels (6.0% vs. 6.1%). Food inflation also moderated to 7.74% from 8.2%. Within this category, prices of perishable food items declined by 2.35%, reversing part of the sharp 11.78% surge recorded in the previous month.
In contrast, inflation for non-perishable food items rose markedly, accelerating to 9.55% from 7.64%, which kept overall food inflation elevated. Transport costs also continued to rise at a faster pace, with inflation in the transport category climbing to 28.61% from 27.43%.
On a monthly basis, consumer prices increased by 1.1% in October, easing from a 1.3% rise in September.
