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Pakistan's Double-Digit Inflation Persists as Fuel, Power Costs Bite
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News18•03-10-2026, 15:30
Pakistan's Double-Digit Inflation Persists as Fuel, Power Costs Bite
- •Pakistan's inflation eased slightly to 10.3% in September 2026, down from 11.1% in August, but remains above government projections.
- •Rising electricity and fuel costs are offsetting relief from lower food inflation, with energy-related inflation reaching 11.5% in urban areas and 13.1% in rural areas.
- •Petrol prices are 39% higher, electricity 33% more expensive, and transport services 30% higher annually, significantly impacting household budgets.
- •The government anticipates annual inflation could reach 8.2% if oil prices remain near USD 100 through December, with price pressures expected to ease gradually after December.
- •Despite some food price declines, onion prices surged 125% year-on-year, wheat 41%, and wheat flour 32% more expensive, prompting the government to import 765,000 tonnes of wheat.
Key Questions Answered
Pakistan's inflation rate eased to 10.3 per cent in September 2026, dropping down from 11.1 per cent in August.
Rising electricity and fuel costs continue to offset the relief provided by lower food inflation.
The government has indicated that inflation could average around 7.5 per cent during the fiscal year if global conditions stabilise and Brent crude averages about USD 80 per barrel.
