Pakistan inflation clocks in at 11.1% in August 2026

Pakistan's headline inflation reached 11.1% year-on-year in August 2026, up from 9.2% the previous month, according to data released by the Pakistan Bureau of Statistics. The consumer price index (CPI) remained unchanged at 3.1% in August 2025. On a month-over-month basis, CPI inflation remained steady at 1.2% in August 2026, unchanged from the previous month and a 0.6% decrease compared to August 2025.

Urban CPI inflation saw a significant rise of 10.4% year-over-year in August 2026, compared to an 8.7% increase in the previous month and a 3.5% increase in August 2025. The urban CPI inflation also increased by 0.9% in August 2026 compared to a 1.2% rise in the previous month and a 0.7% decrease in August 2025. Conversely, rural CPI inflation saw a substantial increase of 12.2% year-on-year in August 2026, up from a 9.9% increase in the previous month and a 2.5% rise in August 2025.

On a month-over-month basis, rural CPI inflation rose by 1.6% in August 2026, up from the 1.2% increase in the previous month and a 0.5% decrease in August 2025. The government's monthly economic survey for August 2026 had anticipated inflation to remain elevated at 10-11% due to global commodity and energy price pressures. The survey cautioned that risks persist, particularly from geopolitical uncertainty, global energy prices, and their potential impact on inflation and the external account.

The government emphasized that continued prudent macroeconomic management and the implementation of reforms would be crucial for maintaining stability and fostering sustainable, inclusive growth into the fiscal year 2027. The outlook highlighted the importance of policy discipline and advancing structural reforms to enhance the economy's resilience to external shocks and preserve the benefits of macroeconomic stability.