ISLAMABAD: Pakistan’s consumer inflation (CPI) accelerated sharply in September 2025, with headline CPI climbing to 5.6% year-on-year (YoY), up from 3.0% in August and 6.9% in September 2024.
On a monthly basis, CPI rose by 2.0% in September, reversing the 0.6% decline recorded in August.
This marks a rebound in price pressures after months of relative easing.
In the first three months of FY26, average inflation stood at 4.22%, a significant decrease from 9.2% in the same period last year, indicating a moderation in price pressures compared to the previous year.
The easing was attributed to a stronger rupee and the impact of monetary policy. However, the recent uptick in September signals that inflationary risks remain, particularly if food and energy prices continue to rise.
The increase was broad-based, with urban inflation rising 5.5%, compared to 3.4% in August, while rural inflation surged 5.8%, more than double last month’s pace.
The Sensitive Price Index (SPI), which tracks essential commodities, posted a 4.5% annual increase, while the Wholesale Price Index (WPI) registered a modest 0.6% rise.
This inflationary uptick could complicate the State Bank of Pakistan’s (SBP) monetary policy outlook ahead of its next review.
