Pakistan’s inflation rate climbed to its highest level in nearly two years during March 2026, reflecting a sharp rise in both consumer and wholesale prices, according to data released by Arif Habib Limited (AHL).
The Consumer Price Index (CPI) increased by 7.3 percent year-on-year, up from 7.0 percent recorded in February and significantly higher than 0.7 percent observed in March 2025. On a month-on-month basis, inflation rose by 1.2 percent, compared to 0.3 percent in the previous month, signaling renewed price pressures across the economy.
Urban inflation showed stronger momentum, with CPI rising 7.4 percent year-on-year compared to 6.8 percent in February. Monthly urban inflation increased by 1.3 percent. Meanwhile, rural CPI recorded a 7.2 percent annual increase, slightly below February’s 7.3 percent, while monthly rural inflation climbed by 1.0 percent.
The Sensitive Price Index (SPI), which tracks essential commodities, rose 5.6 percent year-on-year in March after increasing 4.8 percent in February. On a monthly basis, SPI increased by 0.7 percent, reversing a slight decline recorded in the previous month.
Wholesale prices witnessed a notable surge, with the Wholesale Price Index (WPI) jumping 6.7 percent year-on-year, a sharp rise compared to 1.0 percent growth in February. Month-on-month wholesale inflation climbed significantly by 5.9 percent, indicating rising input costs for businesses.
Core inflation, which excludes food and energy items, also moved upward. Urban non-food non-energy inflation rose to 7.4 percent year-on-year, while rural core inflation reached 8.4 percent. Analysts say the broad-based increase across price indicators suggests persistent inflationary pressure that policymakers will closely monitor in the coming months.
Also read: Pakistan Inflation Likely to Rise Again From April
