Pakistan's Inflation Rate More Than Doubles in First Four Months of FY27
Average inflation climbed to 10.05 percent in the first four months of FY27, up from 4.79 percent a year earlier, even as the October reading eased slightly to 9.61 percent year-on-year.
Pakistan's average inflation rate more than doubled during the first four months of FY27, reaching 10.05 percent compared with 4.79 percent in the same period last year, according to data from the Pakistan Bureau of Statistics (PBS) and a research note by Topline Securities. The increase represents a 109.8 percent jump in the inflation rate year-on-year.
Consumer Price Index (CPI) inflation stood at 9.61 percent in October 2026 on a year-on-year basis, easing from 10.26 percent in September but still well above the 6.25 percent recorded in October 2025. The October reading also exceeded Bloomberg survey estimates of 9.5 percent. On a month-on-month basis, prices rose 1.1 percent, slower than the 1.3 percent increase in September and the 1.7 percent gain recorded in October last year.
Urban and rural inflation followed a similar pattern. Urban inflation came in at 9.5 percent year-on-year in October, down from 10.1 percent in September but higher than 6 percent a year earlier, with a monthly increase of 0.8 percent. Rural inflation reached 9.8 percent year-on-year, compared with 10.5 percent in September and 6.6 percent in October 2025, while rising 1.5 percent month-on-month.
Core inflation, which strips out food and energy prices, eased to 7.8 percent in October from 8.6 percent in September, according to Topline Research. However, it remained above the 7.5 percent recorded in October 2025, suggesting underlying price pressures have not fully subsided.
Other price indicators also pointed to persistent pressure. The Sensitive Price Indicator (SPI) rose 8.7 percent year-on-year, slightly above the 8.4 percent increase in September. Wholesale Price Index (WPI) inflation accelerated to 13.8 percent year-on-year in October, up from 13.3 percent in September and just 1.1 percent in October 2025, indicating continued cost pressures further up the supply chain.
The latest figures show inflation cooling marginally on a monthly and yearly basis while remaining far above last year's levels across most measures. The data is likely to shape expectations for monetary policy and household purchasing power in the months ahead.
