Pakistan’s headline inflation stood at 11.1% year-on-year (YoY) in June 2026, according to the latest data released by the Pakistan Bureau of Statistics (PBS) on Wednesday.
Although inflation remained in double digits, it eased slightly from 11.7% recorded in May 2026, while remaining significantly higher than the 3.2% recorded in June 2025.
The latest figures indicate that inflationary pressures persisted during the final month of the fiscal year despite a modest monthly decline in consumer prices.
Consumer Prices Fall 0.3% on Monthly Basis
According to the PBS, the Consumer Price Index (CPI) declined by 0.3% month-on-month (MoM) in June 2026.
This follows a 0.5% increase in May 2026 and a 0.2% rise in June 2025.
The monthly decline suggests that while annual inflation remains elevated due to higher prices compared to last year, consumer prices experienced a slight easing during June.
Annual Inflation Averages 7.05% in FY2025-26
For the fiscal year 2025-26, average inflation reached 7.05%, compared with 4.49% during the previous fiscal year.
The increase reflects sustained price pressures across various sectors throughout the year, despite periods of relative stability in some commodity prices.
Urban and Rural Inflation Remain Above 10%
Urban inflation continued to outpace rural inflation during June.
According to PBS data, urban CPI inflation increased by 11.2% year-on-year, down from 11.8% in May 2026, but considerably higher than 3.0% recorded in June 2025.
On a monthly basis, urban inflation declined by 0.5%, compared with a 0.7% increase in May and a 0.1% increase in June last year.
Meanwhile, rural CPI inflation stood at 10.9% year-on-year, easing from 11.5% in May 2026 but remaining substantially above the 3.6% recorded in June 2025.
On a monthly basis, rural inflation remained unchanged during June after increasing 0.3% in May. In comparison, rural prices had risen 0.5% during June 2025.
Government Expects Inflationary Pressures to Ease
In its latest monthly economic outlook, the Ministry of Finance said easing geopolitical tensions in the Middle East have improved global market sentiment.
The ministry noted that international crude oil prices have retreated from recent highs, reducing imported inflationary pressures and potentially lowering domestic fuel and transportation costs.
It projected inflation to remain within the 11% to 12% range for June 2026, broadly in line with the latest PBS figures.
The ministry also said lower global oil prices are expected to support Pakistan’s external sector by reducing the country’s oil import bill.
SBP Keeps Policy Rate Unchanged
Last month, the State Bank of Pakistan (SBP) decided to keep its benchmark policy rate unchanged at 11.5% following a meeting of the Monetary Policy Committee (MPC).
The central bank assessed that inflation is likely to remain in double digits over the coming months before gradually easing as domestic and external economic conditions improve.
The latest inflation reading will remain a key indicator for policymakers as they assess future monetary policy decisions and monitor the impact of global commodity prices on Pakistan’s economy.