FX.co ★ Pakistan Inflation Rises to 5.8% in January

In January 2026, Pakistan experienced a year-on-year inflation rise to 5.8%, slightly up from 5.6% in December. This rate remains aligned with the State Bank of Pakistan's target range of 5–7% and the Ministry of Finance's projection of 5–6%. The observed increase in inflation was driven by the growing costs in sectors such as food and non-alcoholic beverages, which rose by 3.90% compared to 3.24% previously, housing and utilities showing a 7.29% increase from the previous 6.86%, and miscellaneous goods and services, climbing to 20.97% from 19.26%. Conversely, transportation costs saw a decrease in inflation to 2.61% from 4.94%. On a monthly basis, consumer prices saw a 0.4% increase, recovering from a 0.4% decline in December.