Pakistan's annual inflation rate cooled to 9.6% in October 2026, dropping from 10.3% in September and marking the third straight month of deceleration. Despite the moderation, price growth continues to outpace the State Bank of Pakistan's target range. Elevated global oil prices and a heavy dependency on imported energy remain key factors clouding the nation's economic outlook.
Sector Breakdown and Cost Pressures
Price pressures eased across several major categories. Housing and utilities inflation slowed to 11.03% from 12.39%, while food inflation moderated to 7.74% compared to 8.2% in September. Perishable food costs notably decreased by 2.35%, reversing a sharp 11.78% surge from the prior month. Conversely, non-perishable food items experienced accelerated inflation, rising to 9.55% from 7.64%, and transport price growth quickened further to 28.61%.
On a monthly basis, consumer prices increased by 1.1% in October, representing a slight easing from the 1.3% monthly rise recorded in September.
