ISLAMABAD: Pakistan’s inflation almost doubled in September, reaching 5.6% the highest level in 10 months as heavy floods disrupted farm supplies and triggered fresh food price shocks, according to official data released on Wednesday.
The surge comes after inflation stood at just 2.96% in August, showing how quickly prices bounced back. A year earlier, in September 2024, inflation had been much higher at 6.93%.
The main driver was food inflation, which jumped 5.46% year on year after slipping into negative territory (-1.79%) in August. Key household essentials saw sharp increases: tomatoes soared 65%, wheat rose 37.6%, flour climbed 34.4%, onions went up 28.5%, and fresh vegetables gained 9%. Other staples including rice, pulses, sugar, butter, and eggs also became more expensive. Some relief, however, came from poultry and mash pulse, which saw slight price drops.
Beyond food, transport costs rose to 4.2% from 2.5% a month earlier, while household furnishing and equipment maintenance climbed to 4.13% from 3.5%. Housing and utilities held steady at 3.65%. Prices of clothing and footwear eased slightly to 8% from 8.1%, and restaurant/hotel charges slowed to 6.1% from 7.2%. Meanwhile, recreation and culture expenses fell further, down 2.7%.
Economists warn that rising inflation combined with Pakistan’s high borrowing cost 11% policy rate set by the State Bank is straining the economy. They argue for a single-digit rate to reduce debt pressure, as nearly three-fourths of government revenue goes to debt servicing. The central bank’s board will meet on October 27 to decide on monetary policy.
In September, core inflation (excluding food and energy) was recorded at 7%, almost unchanged from 6.9% in August, but lower than 9.3% in September 2024. Urban inflation stood at 5.5% while rural inflation was 5.8%, compared with 6.9% and 2.4% in the same month last year. The Wholesale Price Index (WPI) increased by 0.6% in September, far below the 1.9% rise recorded in the same month of 2024.
