Pakistan’s annual inflation rate eased to 10.3% in September 2026, down from 11.1% in August, but remained well above the State Bank of Pakistan’s target range of 5%–7%. The moderation was driven primarily by a sharp deceleration in food inflation, which fell to 8.2% from 13.9%, as price growth slowed for both non-perishable items (7.6% vs 12.3%) and perishable food items (11.8% vs 24.9%).
Inflation also declined in several other categories, including miscellaneous goods and services (10.9% vs 12.2%), clothing and footwear (9.0% vs 9.2%), health (7.9% vs 8.0%), communication (13.5% vs 13.6%), and alcoholic beverages and tobacco (3.0% vs 3.2%).
By contrast, upward pressure on the overall rate came from transport (27.4% vs 20.2%) and housing and utilities (12.4% vs 8.9%), reflecting higher fuel and electricity costs. Inflation in furnishing and household equipment inched up to 7.2% from 7.1%, and in recreation and culture to 0.6% from 0.5%, while it remained unchanged for restaurants and hotels at 6.1%.
On a monthly basis, consumer prices rose 1.3% in September, following a 1.2% increase in August.
