Islamabad, October 1, 2025 – Pakistan’s economy witnessed renewed price pressures in September as headline inflation rose by 5.6% on a year-on-year basis, according to fresh data released by the Pakistan Bureau of Statistics (PBS) on Wednesday.
The increase marks a sharp turnaround from the 3.0% inflation recorded in August 2025, though still lower than the 6.9% registered in September 2024.
The Consumer Price Index (CPI), which tracks the cost of goods and services, revealed that on a month-on-month basis, inflation grew by 2.0% in September, compared with a decline of 0.6% in August and 0.5% in the same month last year.
Breaking down the figures, CPI inflation in urban areas surged 5.5% year-on-year, while rural areas saw a slightly higher jump of 5.8%. On a monthly basis, prices in urban centers increased by 1.5%, whereas rural households experienced a steeper 2.8% rise, underscoring the heavier impact of price hikes outside major cities.
The Sensitive Price Indicator (SPI), which reflects weekly changes in essential household items, also showed a notable increase of 4.5% year-on-year. Meanwhile, the Wholesale Price Index (WPI) registered a modest 0.6% increase compared to a decline of 1.0% in August.
Core inflation, which excludes volatile food and energy items, painted a mixed picture. In urban areas, non-food, non-energy (NFNE) inflation stood at 7.0% in September, marginally higher than 6.9% a month earlier but down from 9.3% in the same month of 2024. Rural NFNE inflation remained steady at 7.8%, though well below the double-digit surge seen a year ago.
Similarly, trimmed core inflation, which accounts for weighted averages, showed urban inflation at 5.7% and rural inflation at 6.5%, both higher than last month’s readings.
Economists suggest that the September spike was primarily driven by rising food and energy costs, coupled with currency pressures. Seasonal changes in perishable food prices also contributed to the inflationary momentum.
Analysts caution that the persistence of inflation could complicate monetary policy decisions by the State Bank of Pakistan (SBP), which has been striving to maintain price stability while supporting growth. With international oil prices fluctuating and domestic utility adjustments expected in the coming months, experts believe inflationary trends could remain volatile heading into the last quarter of 2025.