According to the latest report from the Pakistan Bureau of Statistics (PBS), the year-on-year Consumer Price Index (CPI) inflation rate reached 5.8% in January 2026, slightly higher than 5.6% recorded in December 2025. On a month-on-month basis, prices increased by 0.4%. The inflation rate remained consistent at 5.8% in both urban and rural areas.
Key drivers of the increase include rising costs in food, housing, utilities, transport, and other essentials. However, the rate stays within the State Bank of Pakistan’s target range of 5-7%. The average inflation for July-January of the fiscal year stood at 5.24%, lower than the previous year. Economic experts attribute this minor uptick to seasonal factors and temporary pressures, expecting stabilization in coming months. Government reforms and external support are aiding efforts to control inflation, providing a positive signal for the public.
