Inflation in Pakistan: Rates, Causes, Effects & History (2026)
Pakistan’s inflation story — from the record 38% peak of May 2023 to today’s 10.3% — explained with fresh PBS data: what’s driving prices, what it costs households, and where it’s headed.
Last updated: 11 October 2026
The Latest Data
Inflation Right Now: September 2026
PBS released the September figures on 1 October 2026. The yearly rate eased — but monthly bills kept climbing.
CPI YoY, September 2026 (PBS)
Month-on-month rise
SBP policy rate
Petrol per litre (10 Oct)
| Measure | Sep 2026 | Aug 2026 | Sep 2025 |
|---|---|---|---|
| National CPI (YoY) | 10.3% | 11.1% | 5.8% |
| National CPI (MoM) | +1.3% | +1.2% | +2.1% |
| Urban CPI (YoY) | 10.1% | 10.4% | 5.7% |
| Rural CPI (YoY) | 10.5% | 12.2% | 5.9% |
| Core inflation — urban | 8.6% | 8.8% | 7.0% |
| Core inflation — rural | 8.1% | 8.5% | 7.8% |
| WPI (YoY) | 13.3% | 11.8% | 0.6% |
The Guides
Twelve Inflation Guides
From the current rate to the 38% record — every guide built on PBS and SBP data.
The Story
From 38% to 10%: How Pakistan Got Here
Four phases of Pakistan’s inflation rollercoaster.
The climb to 38%
IMF-mandated fiscal tightening, rupee depreciation and global commodity prices pushed CPI to a record 38% in May 2023 — the highest since 1965. Food inflation topped 48% in cities. Full story →
The great disinflation
Base effects, a stable rupee and SBP’s tight policy (rates peaked at 22%) dragged inflation from 29% to single digits by late 2024 — one of the fastest disinflations in Pakistan’s history. Full story →
Single digits — briefly
Inflation hovered in single digits through 2025 as energy prices stayed calm and harvests were decent. The SBP began cutting rates. Then geopolitics intervened. Full story →
The energy shock returns
The US–Iran war (Feb 2026) shut the Strait of Hormuz; petrol spiked to Rs 458/litre in April. Inflation re-entered double digits — 10.3% in September — with WPI at 13.3% signalling more pressure ahead. Full story →
Questions
Inflation in Pakistan FAQs
What is the current inflation rate in Pakistan?
What was Pakistan’s highest ever inflation rate?
What causes inflation in Pakistan?
What is the SBP policy rate?
What is the petrol price in Pakistan today?
Is inflation rising or falling in Pakistan?
Understand Every Rupee of It
Twelve guides on Pakistan’s inflation: the data, the drivers, the history.
Feature Pakistan’s economy desk compiles these guides from the Pakistan Bureau of Statistics (pbs.gov.pk), the State Bank of Pakistan (sbp.org.pk) and OGRA notifications. Figures are revised with each release — check the linked guides for the latest monthly data.