CPI slows from 11.1% in June as monthly inflation rises 1.2% despite easing annual price pressures
ISLAMABAD: Pakistan’s headline inflation, measured by the Consumer Price Index (CPI), stood at 9.2% year-on-year (YoY) in July 2026, down from 11.1% recorded in June, according to data released by the Pakistan Bureau of Statistics (PBS) on Monday.
Despite the moderation in annual inflation, prices accelerated on a monthly basis. The CPI increased 1.2% month-on-month (MoM) in July, reversing the 0.3% decline recorded in June. In comparison, monthly inflation had risen 2.9% in July 2025.
The latest figures indicate that inflationary pressures eased compared with the previous month but remained considerably higher than the 4.1% annual inflation recorded in July last year.
Urban and rural inflation
Urban inflation eased to 8.7% YoY in July from 11.2% in June, although it remained above the 4.4% recorded in the corresponding month last year. On a monthly basis, urban CPI rose 1.2%, reversing the 0.5% decline seen in June.
Rural inflation also moderated on an annual basis, slowing to 9.9% YoY from 10.9% a month earlier. However, rural prices increased 1.2% MoM, compared with no monthly change in June.
SPI and WPI trends
The Sensitive Price Indicator (SPI), which measures short-term movements in essential commodity prices, increased 12.0% YoY in July, easing from 12.8% in June. On a monthly basis, SPI inflation accelerated to 2.4%, compared with 0.7% in the previous month.
Meanwhile, the Wholesale Price Index (WPI) rose 9.4% YoY, down from 10.7% in June. Wholesale prices remained unchanged on a monthly basis after declining 1.2% in the previous month.
Core inflation moderates
Core inflation, which excludes food and energy prices, showed mixed trends during the month.
Urban Non-Food Non-Energy (NFNE) inflation eased slightly to 8.6% YoY from 8.7% in June, while rural NFNE inflation edged up to 8.1% from 7.9%.
The 20% weighted trimmed mean, another key indicator of underlying inflation, also moderated. Urban trimmed core inflation slowed to 7.5% YoY from 9.6%, while rural trimmed inflation eased to 8.0% from 9.3%.
Economists said the latest inflation figures suggest price pressures are gradually moderating on an annual basis, although the monthly increase indicates that inflation risks have not completely subsided. They noted that food prices, energy costs, exchange rate movements and global commodity trends will continue to influence the inflation outlook during FY2026-27.
The inflation trajectory will also be closely watched by the State Bank of Pakistan (SBP), as future monetary policy decisions are expected to depend on the pace of disinflation, fiscal developments and external sector conditions.