Pakistan inflation rises 7.3% in March as wheat, fuel, electricity drive prices

Pakistan’s Consumer Price Index (CPI) inflation rose 7.3% year-on-year in March 2026, driven primarily by increases in wheat and wheat flour prices, motor fuel costs and electricity charges, according to data released by the Pakistan Bureau of Statistics.

On a monthly basis, inflation increased 1.18% compared to February, while average inflation during July–March FY2025-26 stood at 5.67%.

PBS data showed urban inflation rose 7.39% year-on-year and rural inflation increased 7.17%, reflecting broad-based price pressures across regions.

On a monthly basis, food prices showed mixed trends. In urban areas, chicken prices increased 13%, fresh fruits 11.25% and fresh vegetables 5.01%, while pulse mash rose 2.78% and meat 1.53%. At the same time, tomatoes declined 29.16%, eggs fell 17.98% and potatoes dropped 12.02%, alongside decreases in wheat (5.48%), wheat flour (2.83%) and sugar (2.11%).

Urban non-food inflation was led by energy and transport costs, with motor fuel rising 18.01%, liquified hydrocarbons 12.63%, transport services 9.15% and electricity charges 5.08%. Other increases were recorded in accommodation services (2.92%), electrical appliances (2.46%), postal services (2.15%) and education (1.29%), while personal effects declined 0.74%.

In rural areas, fresh fruits rose 14.68%, fresh vegetables 6.84% and chicken 6.76%, while tomatoes fell 27.47%, eggs 20.69% and potatoes 18.02%. Declines were also recorded in wheat flour (4.29%), wheat (4.88%) and sugar (2.16%).

Rural non-food inflation mirrored urban trends, with motor fuels increasing 19.3%, liquified hydrocarbons 13.79%, electricity charges 5.08% and transport services 4.73%. Other increases included plastic products (2.93%), tailoring (2.72%) and construction inputs (1.85%), while recreation and culture declined 1.23%.

On a yearly basis, wheat and wheat flour remained the largest contributors to inflation. In urban areas, wheat prices increased 34.24% and wheat flour 23.64%, while in rural areas wheat rose 38.81% and wheat flour 34.8%.

Other food items showing annual increases included butter (14.13%), meat (11.21%), dessert preparations (10.43%), milk powder (9.50%) and condiments and spices (9.30%) in urban areas. In rural regions, increases were recorded in meat (11.01%), dessert preparations (10.52%), wheat products (10.34%) and dry fruits (10.19%).

At the same time, prices of several food items declined sharply year-on-year, including potatoes (43.17% urban, 54.47% rural), chicken (20.34% urban, 24.01% rural), eggs (24.95% urban, 22.63% rural) and pulses.

Non-food inflation on an annual basis was driven by energy and services. In urban areas, personal effects surged 56.52%, liquified hydrocarbons 23.46%, gas charges 22.91%, motor fuel 18.22% and electricity charges 14.22%. In rural areas, personal effects rose 50.31%, motor fuels 19.46%, liquified hydrocarbons 19.77% and electricity charges 14.22%, along with increases in healthcare, education and construction-related costs.

The PBS said CPI is compiled using the 2015-16 base year, covering 356 items across 35 urban centres and 244 items across 27 rural centres, with national inflation calculated as a weighted average of both segments.