Pakistan's inflation rises to 11.7% in May as food and fuel prices surge 

Pakistan's Consumer Price Index (CPI)-based inflation accelerated to 11.7% year-on-year in May 2026, up from 10.9% in April and 3.5% in May 2025, as higher food, fuel, and transport costs continued to push up consumer prices, according to data released by Pakistan Bureau of Statistics (PBS) on Monday. 

Arif Habib Limited (AHL) said the 11.7% inflation reading was the highest since June 2024.

During July 2025 to May 2026, inflation averaged 6.69%, compared with 4.61% in the same period last year.

Data shows that urban inflation rose to 11.8% year-on-year in May from 11.1% in April and 3.5% a year earlier. On a monthly basis, urban prices increased by 0.7%, compared with 2.7% in April.

Rural inflation climbed to 11.5% year-on-year from 10.6% in the previous month and 3.4% in May 2025. On a month-on-month basis, rural inflation increased by 0.3%, compared with 2.1% in April.

The Sensitive Price Indicator (SPI), which tracks short-term price movements, recorded a 12% year-on-year increase in May compared with 10.1% in April. On a monthly basis, SPI rose by 0.7%.

Wholesale inflation remained elevated, with the Wholesale Price Index (WPI) increasing 12.7% year-on-year in May compared with 13.6% in April and 0.4% in May 2025. However, WPI declined by 0.8% month-on-month after rising 5.1% in April.

Core inflation, measured by non-food non-energy (NFNE) urban inflation, rose to 9% year-on-year in May from 8% in April and 7.3% a year earlier. On a monthly basis, urban core inflation increased by 1.3%.

Rural core inflation eased slightly to 8.4% year-on-year from 8.5% in April but remained close to last year's level of 8.8%. On a monthly basis, it increased by 0.2%.

Meanwhile, trimmed core inflation measured through the 20% weighted trimmed mean increased to 9.8% year-on-year in urban areas and 9.6% in rural areas, compared with 9.2% and 8.9%, respectively, in April.

Food prices remained a major contributor to inflation during May.

On a monthly basis, wheat flour prices rose by 11.21%, followed by wheat at 7.78%, ice cream at 5.49%, potatoes at 4.01%, bakery and confectionery products at 2.40%, meat at 2.25%, dessert preparations at 1.84%, milk products at 1.46% and fresh milk at 1.41%.

However, several food items recorded declines during the month, including tomatoes, which fell 43.18%, fresh vegetables 24.93%, eggs 5.99%, onions 5.23%, chicken 1.59% and fresh fruits 1.37%.

Among non-food items, footwear prices surged 29.04% month-on-month, postal services rose 9.89%, motor fuel 7.62%, transport services 3.70% and construction wage rates 3.64%.

Electricity charges declined by 5.11% during the month, while liquefied hydrocarbons fell 12.02%.

Compared with May 2025, wheat prices increased 62.15%, wheat flour 54.36%, onions 52.73%, tomatoes 25.81%, meat 14.07%, dessert preparations 12.78% and rice 7.53%.

Among non-food items, motor fuel prices rose 51.91% year-on-year, liquefied hydrocarbons 49.42%, transport services 42.45%, electricity charges 36.47%, personal effects 33.87%, postal services 33.54% and footwear 29.33%.

Some food items posted annual declines, including potatoes, which were down 36%, chicken 20.96%, pulse gram 18.74%, eggs 18.53%, sugar 14.58% and pulse masoor 11.90%.

The data indicates that while wholesale price pressures moderated during May, consumer inflation continued to accelerate, driven largely by increases in food staples, fuel prices and transportation costs.