Pakistan’s inflation eases to 10.3% in September

Pakistan’s annual consumer inflation eased to 10.3% in September 2026 from 11.1% in August, mainly due to a significant slowdown in food price increases, according to official data released on Thursday.

The latest Consumer Price Index (CPI) reading reversed part of the sharp acceleration recorded in August, when inflation had climbed from 9.2% in July to 11.1%. However, prices continued to rise on a monthly basis, increasing by 1.3% in September.

Inflation was recorded at 10.1% in urban areas, down from 10.4% in August. Rural inflation declined more noticeably, falling from 12.2% to 10.5%.

Food inflation provided the main relief during the month. Urban food inflation dropped to 8.1% from 12.1%, while rural food inflation fell to 7.7% from 13.2% in August.

Despite the improvement in food prices, non-food inflation remained under pressure. Urban non-food inflation increased to 11.5% from 9.4%, while the rural rate rose to 13.1% from 11.3%.

Energy and transport costs continued to put pressure on household budgets. Electricity charges increased by 15.28% during September, while motor fuel prices rose by more than 11%. Transport costs increased by 5.75% during the month and were 27.43% higher than a year earlier.

Housing, water, electricity, gas and fuel costs also increased by 3.05% month-on-month and were 12.39% higher compared with September 2025.

Food prices showed mixed movements. Onion prices surged by 39.38% during the month, while tomatoes declined by 27.87%. Chicken prices fell by 7.57%, while eggs and fresh fruits also recorded declines.

On an annual basis, onion prices remained a major source of food inflation, rising 136.7%. Wheat increased by 37.46%, while wheat flour prices rose 34.31%. In contrast, potato prices fell 34.47%, sugar declined 21.82% and chicken prices dropped 21.31%.

Core inflation, which excludes volatile food and energy prices, also edged lower. It fell to 8.6% in urban areas from 8.8% in August, while the rural rate declined to 8.1% from 8.5%.

The September inflation figure remained within the Finance Ministry’s projected range of 10% to 11% for the month. However, continued increases in energy, fuel and transport costs indicate that inflationary pressure on household expenses remains significant.