September inflation rises to 5.6%

October 01, 2025 (MLN): Pakistan’s consumer inflation accelerated sharply in September, with headline CPI climbing 5.6% YoY, compared to 3.0% in August 2025 and 6.9% in September 2024.

On a monthly basis, CPI rose 2.0% in September, reversing the 0.6% decline recorded in the previous month.

This has indicated a rebound in price pressures after months of relative easing.

Within 3MFY26, average inflation stood at 4.22%, down sharply from 9.2% in the same period last year, indicating a significant easing in price pressures compared to the previous year.

The moderation showcased the impact of a stronger rupee, monetary policy impact, though the recent uptick in September signals that inflationary risks remain and could re-emerge if food and energy prices continue to rise.

The increase was broad-based as urban inflation rose 5.5% versus 3.4% in August, while rural inflation surged 5.8%, more than double last month’s pace.

The Sensitive Price Index (SPI), a key gauge of essential commodities, posted a 4.5% annual increase, while the Wholesale Price Index (WPI) registered a modest 0.6% rise. 

This increase in the inflation number could complicate the State Bank of Pakistan’s monetary policy outlook ahead of its next review.

 Copyright Mettis Link News