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Inflation slows to 10.3pc in September

By Mubarak Zeb Khan 2026-10-02
ISLAMABAD: Consumer inflation slowed to 10.3 per cent in September from 11.1pc a month earlier, mainly due to a sharp slowdown in food inflation, the Pakistan Bureau of Statistics said on Thursday.

The slight deceleration in inflation, measured by the Consumer Price Index, reversed the sharpincrease recorded in August, when higher food and energy prices pushed the annual rate to 11.1pc from 9.2pc in July.

The easing was more pronounced in rural areas, where inflation slowed to 10.5pc from 12.2pc, while urban inflation decelerated to 10.1pc from 10.4pc.

However, despite the slowdown in the annual rate, prices rose 1.3pc month-onmonth in September. The annual inflation was 5.8pc in September 2025.

Food inflation dropped to 8.1pc in urban areas in September from 12.1pc in August. The decline was much sharper in rural areas, where food inflation fell to 7.7pc from 13.2pc a month earlier.

However, non-food inflation moved in the opposite direction, indicating continued pressure on household expenses. Urban non-food inflation accelerated to 11.5pc from 9.4pc in August, while rural non-food inflation increased to 13.1pc from 11.3pc.

In August, food, housing and utilities, and transport together contributed 8.2 percentage points, or about three-quarters of headline inflation. Food alone contributed 4.9 percentage points. The latest data show that the composition of inflation shifted in September. While food inflation slowed sharply, electricity and transport costs continued to rise.

Electricity charges rose 15.28pc while motor fuel prices up 10.76pc in urban areas. Transport costs rose by 5.75pc and were 27.43pc higher than in the same month last year.