Pakistan Inflation Rises To 11.1% In August 2026, Returns To Double Digits After Brief Relief

Pakistan's annual consumer price inflation increased to 11.1% in August 2026, marking a return to double-digit figures following a brief period of relief. The Consumer Price Index (CPI) inflation in urban areas stayed at 10.4% year-on-year in August, while rural areas experienced a higher inflation rate of 12.2%. The Sensitive Price Index (SPI) inflation also rose to 10.72% in August.

Additionally, Pakistan's Wholesale Price Indicator (WPI)-based inflation surged by 10.62%. The inflation trend in Pakistan had been at 11.1% in June, 11.7% in May, and 10.9% in April before dropping to 7.3% in March. On a month-on-month basis, CPI inflation remained steady at 1.2% in August. The cost of food and non-alcoholic beverages rose by 13.89% in August, housing, water, electricity, gas, and fuel costs increased by 8.87%, clothing and footwear prices grew 9.23%, health costs increased 8.02%, education charges rose 7.82%, and prices at restaurants and hotels went up 6.1%.

Furnishing and household equipment maintenance charges also increased by 7.08%. Alcoholic beverages and tobacco prices increased by around 3.2%. The Sensitive Price Indicator-based inflation rose 10.72%, while Wholesale Price Index-based inflation increased 10.62% in August. Inflation might remain elevated in the near term due to recent price pressures and shifts in international commodity and energy prices affecting the domestic economy. For August 2026, CPI inflation is projected to stay between 10 and 11%.