Islamabad, March 2, 2026 – Pakistan’s headline inflation surged to 7% in February 2026, marking a significant rise compared to both last month and the same period last year, according to the Pakistan Bureau of Statistics (PBS). The increase reflects continued pressure on consumer prices amid rising costs across food, energy, and other essential commodities.
Key Inflation Indicators
• CPI Inflation – General: Year-on-year (YoY) rose 7.0% in February 2026, up from 5.8% in January 2026 and 1.5% in February 2025. Month-on-month (MoM) growth stood at 0.3%.
• CPI Inflation – Urban: Increased 6.8% YoY and 0.3% MoM, compared to 5.8% YoY in January 2026.
• CPI Inflation – Rural: Recorded 7.3% YoY and 0.3% MoM, higher than the 5.8% YoY of the previous month.
• Sensitive Price Indicator (SPI): Rose 4.8% YoY in February, down slightly MoM by 0.1%.
• Wholesale Price Index (WPI): Grew 1.0% YoY and 0.7% MoM, compared to a 0.2% YoY increase in January 2026.
Core Inflation Measures
Non-Food Non-Energy (NFNE)
• Urban: YoY inflation 7.1%, slightly down from 7.2% in January 2026; MoM rose 0.2%.
• Rural: YoY inflation remained stable at 8.3%; MoM increased 0.4%.
Trimmed Mean (20% Weighted)
• Urban: YoY rose 5.1%, MoM increased 0.2%.
• Rural: YoY rose 5.6%, MoM increased 0.3%.
Analysis
Economists said the sharp rise in headline inflation reflects increasing food and energy prices, along with supply-side pressures affecting both urban and rural markets. Rural areas showed slightly higher inflation, particularly in non-food and non-energy categories, indicating ongoing challenges in agricultural and essential commodity sectors.
The PBS report highlights the persistent upward trend in consumer prices across Pakistan, signaling that cost-of-living pressures remain a concern for households, businesses, and policymakers alike.
Outlook
Analysts advise monitoring monetary policy measures and supply chain dynamics, as further increases in inflation could affect purchasing power and investment decisions. Policymakers are expected to take note of rising prices when formulating fiscal and monetary strategies for the coming months.