Summary Pakistan’s annual inflation surged to 11.1% in August 2026 from 9.2% in July, driven by rising economic pressures and global commodity risks.
ISLAMABAD (Dunya News) - Pakistan’s inflation rate rose sharply to 11.1% year-on-year in August 2026, compared with 9.2% in July, according to data released by the Pakistan Bureau of Statistics (PBS).
Under the Consumer Price Index (CPI), inflation stood at 3.1% in August 2025.
On a month-on-month basis, inflation remained at 1.2% in August 2026, while August 2025 had recorded a monthly decline of 0.6%.
The data showed that inflation in urban areas increased 10.4% year-on-year in August 2026, compared with 8.7% in July and 3.5% in August 2025.
Urban inflation rose 0.9% month-on-month in August, compared with a 1.2% increase in July. In August 2025, urban inflation had declined by 0.7% on a monthly basis.
Rural areas recorded an even sharper increase, with inflation reaching 12.2% year-on-year in August, up from 9.9% in July and 2.5% in August 2025.
On a monthly basis, rural inflation increased 1.6% in August, compared with 1.2% in July. Rural inflation had declined by 0.5% in August 2025.
The government had already projected in its monthly economic review for August 2026 that inflation could remain elevated between 10% and 11% due to pressures from global commodity and energy prices.
The economic review noted that geopolitical uncertainty and risks surrounding global energy prices remained significant and could affect both inflation and the country’s external accounts.
The review stressed that cautious macroeconomic management and continued reforms would be necessary in fiscal year 2027 to preserve economic stability and maintain growth momentum.
The government said sustained and inclusive economic growth would require continued policy discipline and structural reforms to strengthen the economy against external shocks and preserve the gains made in macroeconomic stability.
