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August Inflation

Pakistan’s inflation benchmark Consumer Price Index clocked in at 11.1 percent on a year-on-year (YoY) basis in August 2026, up from 9.2 percent recorded in July, as shown by Pakistan Bureau of Statistics (PBS) data on Tuesday.

Hamza Habib

Deputy News Editor1 September 20262 min read

August InflationPhoto: QOM

Inflation benchmark CPI surged by 11.1 percent in August

Islamabad: Pakistan’s inflation benchmark Consumer Price Index clocked in at 11.1 percent on a year-on-year (YoY) basis in August 2026, up from 9.2 percent recorded in July, as shown by Pakistan Bureau of Statistics (PBS) data on Tuesday.

The CPI) was recorded at 3.1 percent in August 2025. On month-on-month basis, it remained unchanged at 1.2 percent in August 2026 as compared to the previous month and a decrease of 0.6 percent in August 2025.

Urban CPI inflation increased by 10.4 percent on year-on-year basis in August 2026 as compared to an increase of 8.7 percent in the previous month and an increase of 3.5% in August 2025. On month-on-month basis, it increased by 0.9 percent in August 2026 as compared to an increase of 1.2 percent in the previous month and a decrease of 0.7 percent in August 2025. Rural CPI inflation increased by 12.2 percent on year-on-year basis in August 2026 as compared to an increase of 9.9 percent in the previous month and an increase of 2.5 percent observed in August 2025. On month-on-month basis, it increased by 1.6 percentin August 2026 as compared to an increase of 1.2 percent in the previous month and a decrease of 0.5% in August 2025.

In its monthly Economic Update & Outlook for August 2026, the Ministry of Finance had seen inflation elevated at 10-11 percent in August 2026 amid global commodity and energy price pressures. The economic update stated that risks remain, particularly from geopolitical uncertainty, global energy prices, and their potential implications for inflation and the external account. Continued prudent macroeconomic management and reform implementation would therefore remain important to safeguard stability and sustain the growth momentum into fiscal year 2027, it added.

The outlook noted that maintaining policy discipline and advancing structural reforms would be important for sustainable and inclusive growth, strengthen the economy’s resilience to external shocks, and preserve the gains of macroeconomic stability.