Average inflation for FY2025-26 rises to 7.05% as consumer prices remain in double digits despite monthly decline
ISLAMABAD: Pakistan’s headline inflation eased slightly to 11.1% year-on-year in June 2026, while the average inflation rate for the fiscal year 2025-26 climbed to 7.05%, according to the latest figures released by the Pakistan Bureau of Statistics (PBS) on Wednesday.
The data showed that inflation, measured by the Consumer Price Index (CPI), moderated from 11.7% in May 2026 but remained significantly higher than the 3.2% recorded in June 2025, reflecting persistent price pressures across the economy.
On a month-on-month basis, headline CPI declined by 0.3% in June 2026, compared with an increase of 0.5% in May 2026 and a rise of 0.2% in June 2025.
The PBS reported that average inflation during FY2025-26 stood at 7.05%, compared with 4.49% in the preceding fiscal year, indicating a higher overall cost of living over the 12-month period.
Urban and rural inflation ease
Urban inflation increased by 11.2% year-on-year in June 2026, down from 11.8% in May but sharply higher than 3.0% recorded in June 2025. On a monthly basis, urban CPI fell by 0.5%, reversing the 0.7% increase recorded in the previous month.
In rural areas, CPI inflation slowed to 10.9% year-on-year from 11.5% in May, compared with 3.6% in June last year. On a monthly basis, rural inflation remained unchanged after rising 0.3% in May.
SPI and WPI trends
The Sensitive Price Indicator (SPI), which tracks the prices of essential commodities, increased by 12.8% year-on-year in June 2026, compared with 12.0% in the previous month. On a monthly basis, SPI recorded an increase of 0.7%.
Meanwhile, the Wholesale Price Index (WPI) inflation slowed to 10.7% year-on-year, down from 12.7% in May 2026, although it remained substantially above the 0.6% recorded a year earlier. On a month-on-month basis, wholesale prices declined by 1.2%, following a 0.8% decrease in May.
Core inflation moderates
The PBS data also indicated a slight easing in core inflation, which excludes volatile food and energy prices.
Urban non-food, non-energy inflation stood at 8.7% year-on-year in June 2026, compared with 9.0% in May, while monthly core inflation declined by 0.1%.
In rural areas, non-food, non-energy inflation eased to 7.9% year-on-year from 8.4% in the previous month, with monthly inflation remaining broadly stable.
The 20% weighted trimmed mean—another measure of core inflation—also moderated. Urban trimmed mean inflation slowed to 9.6% year-on-year from 9.8%, while rural trimmed mean inflation eased to 9.3% from 9.6%. On a monthly basis, the trimmed mean increased by 0.3% in urban areas and 0.5% in rural areas.
The latest inflation figures suggest that while headline price pressures softened marginally in June, inflation remains firmly in double digits, posing continued challenges for households, businesses and policymakers as the new fiscal year begins.
