Pakistan recorded year-on-year inflation of 10.26% in September, accelerating sharply from 5.76% in the same month of 2025, according to the Pakistan Bureau of Statistics’ monthly inflation report released on Thursday.
On a month-on-month basis, inflation slowed down, as it reached 11.15% in August.
The September reading was broadly in line with market expectations. Topline Research said the 10.26% inflation rate was close to the 10.2% estimate from a Bloomberg survey. Core inflation, excluding more volatile food and energy prices, eased to about 8.6% in September from 8.8% in August, but remained above the 7% recorded in September 2025, Topline Research said.
Inflation averaged 10.20% during the first quarter of fiscal year 2027, compared with 4.30% during the same period of fiscal year 2026, according to Topline Research.
Food prices mixed
Food prices showed divergent trends across urban and rural areas during September. At the national level, onions became 29.17% more expensive during the month, while wheat prices increased 3.86%. Wheat flour rose 2.28%, masoor lentils 1.56% and dry fruits 1.27%, according to the statistics bureau.
In urban areas, tomato prices fell 24.68% during the month, while chicken declined 8.14%. Egg prices dropped 5.92%, potatoes 4.19% and moong lentils 2.09%.
Rural consumers also saw declines in several food prices. Tomatoes fell 27.87%, chicken 7.57% and eggs 2.92%. Fruit prices decreased 2.56%, potatoes 2.30% and sugar 1.70%.
However, rural onion prices surged 39.38%, while gram lentils increased 2.42%. Wheat flour rose 1.72%, wheat 1% and vegetables 0.87% during the month.
Energy costs remain key driver
Energy prices continued to put upward pressure on household costs. Electricity prices increased 15.28% during September, while motor fuel prices rose 10.76%, according to the national consumer price data. Medicine prices increased 0.98%. In rural areas, electricity prices also rose 15.28%, while motor fuel prices increased 11.13%.
Urban inflation increased 1.31% on a monthly basis in September, while rural inflation rose 1.23%, according to the Pakistan Bureau of Statistics.
The September inflation data comes as policymakers monitor price pressures while balancing economic stabilization with measures aimed at sustaining economic growth.