Core inflation, which excludes volatile food and energy prices, rose to 8.7% year-over-year in August, up from 8.4% in July.
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Web Desk
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KARACHI: Pakistan’s Consumer Price Index (CPI) inflation climbed to 11.15% year-over-year in August 2026, up 1.19% from the previous month, matching analysts’ projections of 11.09%.
The annual increase was driven largely by a 13.89% rise in food prices, a 20.17% jump in transport costs and a 13.6% increase in communication expenses, according to the data.
On a monthly basis, transport was the largest contributor to inflation, rising 3.41%, followed by a 1.66% increase in food prices.
Core inflation, which excludes volatile food and energy prices, rose to 8.7% year-over-year in August, up from 8.4% in July.
The transport segment posted a 3.41% monthly increase and a 20% annual rise, reflecting higher fuel prices tied to increased international oil costs. Motor fuel prices alone rose 5.61% during the month.
Food inflation reached 1.66% on a monthly basis, driven primarily by sharp price increases for onions, which rose 46%, and eggs, up 12%.
The Housing, Water, Electricity and Gas category recorded inflation of 0.55%. Within the segment, liquefied petroleum gas prices fell 1.31% month-over-month, but the decline was offset by a 1.7% rise in electricity charges.
The increase in electricity costs was mainly attributed to a higher Fuel Charges Adjustment, which rose to Rs0.7503 per kilowatt-hour from Rs0.3364 per kilowatt-hour in July. Water costs also rose 4.15%, adding further pressure to the segment.
With headline inflation at 11.2% for August, Pakistan’s real interest rate stood at 0.4%, slightly above the country’s historic average range of 200 to 300 basis points.
