Pakistan’s consumer price inflation eased to 9.6% year-on-year in October 2026, down from 10.3% in September, according to data released by the Pakistan Bureau of Statistics on November 2, 2026. It was the third consecutive monthly decline, though inflation remained above the State Bank of Pakistan’s 5% to 7% target range.
What happened?
The bureau’s monthly figures showed price pressures cooling on an annual basis while remaining firm in the short term. Consumer prices rose 1.1% in October compared with September, easing from a 1.3% monthly increase the month before.
Key details:
- Headline CPI inflation: 9.6% year-on-year in October 2026, down from 10.3% in September 2026
- Urban inflation: 9.5% year-on-year; rural inflation: 9.8% year-on-year
- Food inflation eased to 7.74%, from 8.2% in September, helped by a fall in perishable food prices
- Housing and utilities inflation cooled to 11.03%, from 12.39% in September
- Average inflation for July to October of fiscal year 2026-27 stood at 10.05%, compared with 4.79% in the same period a year earlier
- The State Bank of Pakistan raised its policy rate by 50 basis points to 12% on October 27, 2026, pointing to a deteriorating inflation outlook
What it means for people in Pakistan:
For households, the slowdown offers some relief after months of faster price rises, particularly on food, but costs are still rising — just more slowly than before. With inflation still above the central bank’s target range, borrowing costs are likely to stay high for now, which matters for families taking loans and for small businesses financing stock and expansion.
Source: https://treasure.com.pk/pakistan-inflation-october-2026/
