Rising global oil prices and geopolitical tensions push April inflation to 10.9%, while the government intensifies efforts to maintain economic stability.
ISLAMABAD: Pakistan’s inflation remained relatively controlled during the first three quarters of FY2026, but rising global oil prices and growing geopolitical tensions created fresh challenges for the economy.
According to official economic data, the Consumer Price Index (CPI)-based inflation averaged 6.2 percent during July-April FY2026, compared to 4.7 percent recorded during the same period last year.
Economic experts noted that inflationary trends stayed largely stable for most of the fiscal year. However, external shocks emerging toward the end of the third quarter increased the risk of renewed price pressures, highlighting the need for continued policy vigilance to maintain macroeconomic stability.
Oil Price Surge Pushes April Inflation Higher
One of the key factors behind the latest inflationary concerns was the sharp increase in international crude oil prices. The rise in global energy costs led to higher domestic petroleum prices, significantly impacting transportation and production expenses across various sectors.
As a result, headline inflation climbed to 10.9 percent in April 2026, a substantial increase compared to just 0.3 percent recorded in April 2025. The jump underscores the sensitivity of Pakistan’s economy to fluctuations in global commodity markets.
Urban and Rural Inflation Trends
Data showed that urban food inflation during July-April FY2026 stood at 3.6 percent, while non-food inflation reached 8.0 percent. During the corresponding period last year, urban food and non-food inflation were recorded at 1.1 percent and 9.1 percent, respectively.
In rural areas, food inflation increased by 4.7 percent, compared to a decline of 1.5 percent in the previous year. Rural non-food inflation was recorded at 7.4 percent, slightly lower than the 8.3 percent registered during the same period last year.
Meanwhile, core inflation continued to ease. Urban core inflation averaged 7.2 percent against 8.8 percent last year, while rural core inflation declined to 8.2 percent from 11.6 percent.
Government Measures to Contain Inflation
The government has implemented a coordinated strategy to manage inflationary pressures. The approach includes prudent monetary and fiscal policies, enhanced market monitoring, improved availability of essential commodities, rationalized import duties, and efforts to stabilize the exchange rate.
Other inflation indicators also showed moderate growth. The Wholesale Price Index (WPI) rose by 2.3 percent during July-April FY2026 compared to 2.2 percent last year, while the Sensitive Price Indicator (SPI) stood at 4.1 percent against 4.9 percent in the corresponding period.
Authorities remain focused on limiting the impact of external shocks and ensuring sustainable economic stability in the months ahead.
