Inflation in Pakistan clocks in at 5.8% in January 2026

Pakistan’s headline inflation clocked in at 5.8% on a year-on-year (YoY) basis in January 2026, showed Pakistan Bureau of Statistics (PBS) data on Monday, a reading in line with the Ministry of Finance’s estimate of 5-6%.

The consumer price index (CPI) was recorded at 5.6% in December 2025. The CPI stood at 2.4% in January 2025.

On month-on-month (MoM) basis, it increased by 0.4% in January 2026 as compared to a decrease of 0.4% in the previous month and an increase of 0.2% in January 2025.

This took 7MFY26 inflation at 5.24% vs 6.50% in 7MFY25.

CPI inflation (Urban) remained stable at 5.8% on year-on-year basis in January 2026 as compared to the previous month and an increased by 2.7% in January 2025.

On MoM basis, it increased by 0.2% in January 2026 as compared to a decrease of 0.4% in the previous month and an increase of 0.2% in January 2025.

CPI inflation (Rural) increased by 5.8% on year-on-year basis in January 2026 as compared to an increase of 5.4% in the previous month and 1.9% in January 2025.

On MoM basis, it increased by 0.6% in January 2026 as compared to a decrease of 0.6% in the previous month and an increase of 0.2% in January 2025.

In its Monthly Economic Update & Outlook January 2026, the Finance Division had seen January inflation figures at 5-6%.

Last week, the State Bank of Pakistan (SBP) decided to keep its benchmark policy rate unchanged at 10.5% in its first Monetary Policy Committee (MPC) meeting of 2026.

The decision was against the market expectations, which was hoping for a a rate cut.

SBP Governor Jameel Ahmad announced the MPC decision in a press conference.

Inflation in Pakistan could be above 7% in the current fiscal year’s second half, he said.

The country’s gross domestic product (GDP) would grow by 3.75% to 4.75% this year, Ahmad envisaged.