KARACHI: Pakistan's headline inflation slowed to 10.3% year-on-year in September 2026, down from 11.1% in August, according to data released Thursday by the Pakistan Bureau of Statistics.
The consumer price index stood at 5.8% in September 2025.
On a month-on-month basis, inflation rose 1.3% in September 2026, compared with a 1.2% increase the previous month and a 2.1% increase in September 2025.
Urban CPI inflation increased 10.1% year-on-year in September 2026, down from 10.4% in August and up from 5.7% in September 2025. Month-on-month, urban inflation rose 1.3%, compared with increases of 0.9% in August and 1.6% in September 2025.
Rural CPI inflation rose 10.5% year-on-year in September 2026, down from 12.2% the previous month but up from 5.9% in September 2025. On a month-on-month basis, rural inflation increased 1.2%, compared with increases of 1.6% in August and 2.8% in September 2025.
During the first quarter of fiscal year 2027, CPI inflation averaged 10.2%, compared with 4.3% in the same period last year.
The Finance Division, in its monthly Economic Update & Outlook for September released a day earlier, projected headline CPI inflation at 10% to 11% in September 2026 and said it would remain elevated in the near term, with its subsequent path depending largely on international oil prices.
The report said higher government current spending and interest payments pushed the consolidated fiscal deficit to 596.6 billion rupees in July 2026. It identified elevated global oil prices as the principal risk to the outlook, affecting purchasing power, input costs and the import bill.
The report also noted that the Prime Minister's Fuel Relief Scheme directs support to lower-income households through a digital delivery system without cutting the petroleum levy, protecting purchasing power while preserving fiscal discipline.
