From 29% to near-zero and back up again — Pakistan’s inflation rollercoaster. This guide tracks the Pakistan inflation rate: where it stands in 2026, how it was tamed, and why it rebounded.
Quick answer: Pakistan’s CPI inflation averaged 6.2% in FY2025-26 — down from 29% at the 2023 peak and 4.6% in FY25 — but spiked to 10.9% in April 2026 after the US-Iran conflict disrupted energy prices. The FY2026-27 budget projects 5.0–7.0%.
In this guide
Where It Stands
CPI inflation averaged 6.2% in FY2025-26 — a vast improvement on the 29% peak of 2023 and the 23.4% of FY24, but up from FY25’s 4.6% average. The State Bank’s policy rate, cut from 22% to 11% during the disinflation, is the lever being watched now.
How It Was Tamed
- Tight monetary policy: the policy rate held at 22% through the worst, then eased as inflation fell.
- Stable rupee: Rs 280.65/$ — ending the depreciation-inflation spiral.
- April 2025: inflation hit a historic low of 0.3%.
The 2026 Rebound
Inflation spiked to 10.9% in April 2026 in the aftermath of the US-Iran conflict, which disrupted energy markets — energy imports rose 6.3% to $8.9b. The FY2026-27 budget projects inflation of 5.0–7.0%, assuming energy markets stabilise.
More: survey guide · 2025-26 survey · GDP growth trend.
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Frequently Asked Questions
What is Pakistan’s inflation rate in 2026?
CPI inflation averaged 6.2% in FY2025-26, after spiking to 10.9% in April 2026 on energy-market disruption.
When was Pakistan’s inflation highest?
2023, when it peaked at 29% — before tight monetary policy and a stable rupee brought it down to 4.6% in FY25.
What is Pakistan’s inflation target?
The FY2026-27 budget projects 5.0–7.0% inflation.
