Inflation Rate in Pakistan: The Current 10.3% Explained (October 2026)
Pakistan’s inflation rate is the number behind every household budget in the country. This guide explains the current rate — 10.3% in September 2026 — what it measures, how it’s calculated, and what the other indices (core, SPI, WPI) are signalling.
Quick answer: Pakistan’s inflation rate (CPI) was 10.3% year-on-year in September 2026 (PBS, released 1 Oct 2026) — down from 11.1% in August, but nearly double September 2025’s 5.8%. Prices rose 1.3% in the month. Urban: 10.1%; rural: 10.5%. The SBP’s target is 5–7%.
The latest reading
The Pakistan Bureau of Statistics’ September 2026 review (released 1 October): national CPI up 10.3% year-on-year (10.26% exact), easing from 11.1% in August — the first decline since July. But the monthly pace quickened slightly to 1.3% from 1.2%. The quarterly average for Q1 FY2026-27 stands at 10.2%, against 4.3% in the same quarter last year. Inflation has now exceeded 10% in five of the last six months.
CPI, core, SPI, WPI: the four measures
- Headline CPI (10.3%): the main gauge — a basket of 356 items across 35 cities.
- Core inflation (urban 8.6%, rural 8.1%): strips out food and energy; the “sticky” part SBP watches most.
- SPI (8.4%): weekly index of 51 essential items — the kitchen-budget pulse; latest weekly reading 11.5%.
- WPI (13.3%): wholesale prices — accelerating, which warns of pipeline pressure on future CPI.
Plain-language definitions in our what-is-inflation guide.
What’s driving it
September’s monthly jump came from electricity charges (+15.3%) and motor fuel (+10.8%), plus onions (+29.2% in a month; +125% on the year), wheat (+41% YoY) and flour (+32% YoY). Offsetting: tomatoes (-25%), chicken (-8%), eggs (-6%). Year-on-year, motor fuel is 37.7% dearer and electricity 32.5% — the energy shock from the 2026 oil spike still working through. Full driver analysis in causes of inflation.
Outlook
The Finance Division projected 10–11% for September — the outcome landed at the low end. But with WPI at 13.3% and global oil volatile, the trajectory stays sensitive to energy prices. SBP holds the policy rate at 11.50% — see our policy rate guide.
Related Guides
Current rate: FAQs
What is the inflation rate in Pakistan today?
10.3% year-on-year in September 2026 (PBS) — the latest published reading.
Is inflation rising or falling in Pakistan?
The yearly rate eased in September, but monthly momentum (+1.3%) and wholesale inflation (13.3%) show pressure continues.
What is core inflation in Pakistan?
8.6% urban / 8.1% rural (non-food, non-energy) in September 2026.
What is Pakistan’s inflation target?
The State Bank’s medium-term target is 5–7%.
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