Pakistan’s inflation rate rose to 5.6 percent in September 2025, driven mainly by flood-related disruptions that affected food supplies. The Pakistan Bureau of Statistics (PBS) released the data on Wednesday, confirming the upward trend.
On a month-to-month basis, inflation increased by 2.0 percent in September, compared to a 0.6 percent decline in August. In September 2024, inflation had dropped by 0.5 percent, showing a significant shift this year. Urban inflation was recorded at 5.5 percent, while rural inflation reached 5.8 percent.
During the first quarter of the fiscal year, inflation averaged 4.22 percent. The Sensitive Price Index (SPI), which tracks key consumer goods, rose by 2.7 percent. Meanwhile, the Wholesale Price Indicator (WPI) dropped by 0.30 percent, showing mixed price movements across sectors.
The Ministry of Finance earlier warned that inflation would likely rise temporarily but remain within the 3.5–4.5 percent range. However, the recent floods pushed food prices higher, making inflation cross government expectations. The Monetary Policy Committee (MPC) of the State Bank of Pakistan kept the policy rate unchanged at 11 percent, noting risks to food inflation.
Food and non-alcoholic beverages increased by 5.02 percent in September. Health and education costs rose by more than 10 percent each. Utility prices, including housing, electricity, and fuel, went up by 3.65 percent. Clothing and footwear climbed 8 percent, while restaurant and hotel charges decreased by 6.12 percent.
In rural areas, the steepest price increases were seen in tomatoes (89.21 percent), wheat (35.50 percent), and onions (28.12 percent). Urban areas also saw large rises in wheat and tomatoes, alongside moderate increases in rice, sugar, and eggs.
Despite the recent rise, experts believe adjustments in electricity tariffs could help offset some pressure. Still, the inflation rate may stay above the official 5–7 percent target in the coming months before stabilizing in FY27.
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