FX.co ★ Pakistan Inflation Hits Nearly One-Year High

In September, Pakistan experienced a sharp rise in its annual inflation rate, reaching 5.6%, the highest since October 2024, up from 3.0% in the previous month. This increase was largely driven by a significant recovery in the cost of food and non-alcoholic beverages, which swung from a decrease of 1.8% in August to a 5.0% rise. Additionally, there was accelerated price growth in several sectors: housing and utilities saw an increase from 3.6% to 3.7%, transport from 2.5% to 4.2%, and furnishing and household equipment maintenance from 3.5% to 4.1%. Miscellaneous goods and services also climbed from 14.4% to 14.9%. These increases were somewhat offset by slower price increases in clothing and footwear, which went from 8.1% to 8.0%, and in restaurants and hotels, which fell from 7.2% to 6.1%, alongside a continued decrease in recreation and culture prices from -2.3% to -2.7%. On a month-to-month basis, consumer prices rose 2.0% in September, recovering from a 0.6% decline recorded in August.