Pakistan’s Consumer Price Index (CPI) inflation slowed to 9.2% year-on-year (YoY) in July 2026, falling below the 10% mark for the first time in recent months. However, inflation remains more than double the 4.1% recorded in July 2025, according to the latest data.
The headline inflation rate declined from 11.1% in June 2026, indicating easing price pressures despite continued increases in the cost of living.
Monthly Inflation Rises
On a month-on-month (MoM) basis, CPI inflation increased 1.2% in July, compared with a 0.3% decline in June, reflecting renewed price increases during the month.
Urban and Rural Inflation
Urban inflation eased to 8.7% YoY in July from 11.2% in June, while monthly urban inflation rose 1.2%.
Rural inflation also moderated to 9.9% YoY, down from 10.9% in the previous month, although it also increased 1.2%on a monthly basis.
The Sensitive Price Index (SPI), which tracks prices of essential commodities, recorded 12.0% YoY inflation in July, down from 12.8% in June. On a monthly basis, SPI increased 2.4%.
Meanwhile, the Wholesale Price Index (WPI) slowed to 9.4% YoY from 10.7% in June, while remaining unchanged compared with the previous month.
Core Inflation Continues to Ease
Core inflation also showed signs of moderation:
- NFNE Urban: 8.6% YoY, down from 8.7%
- NFNE Rural: 8.1% YoY, up slightly from 7.9%
- 20% Weighted Trimmed Mean (Urban): 7.5% YoY, down from 9.6%
- 20% Weighted Trimmed Mean (Rural): 8.0% YoY, down from 9.3%
The latest figures suggest inflationary pressures are easing compared with recent months, although consumer prices remain significantly higher than they were a year ago.
