ISLAMABAD: Inflation benchmark Consumer Price Index (CPI) in August FY26 increased by 3.0percent on a year-on-year (YoY) basis. However, experts believed that inflation projections might be revised after food supplies were badly disrupted by the ongoing floods, which created havoc in the country.
According to the statistics issued by the Pakistan Bureau of Statistics, on month-on-basis CPI decreased by 0.6 percent in August FY26as compared to an increase of 2.9 percent in the previous month (July) and an increase of 0.4 percent in August FY25.
CPI inflation in urban areas increased by 3.4percent on a year-on-year basis in August FY26, as compared to 4.4percentof the previous month and 11.7percent in August FY25. On a month-on-month (MoM) basis, it decreased by 0.7percent in August FY26 as compared to 3.4percent in the previous month and an increase of 0.3percent in August FY25.
Food supplies at risk due to floods: FD warns Pakistan’s economy faces renewed challenges
CPI inflation in rural areas increased by 2.4percent on a YoY basis in August FY26, as compared to an increase of 3.5percent in the previous month and 6.7percent in August FY25. On a MoM basis, it decreased by 0.5percent in August 2025 as compared to an increase of 2.2percent in the previous month and an increase of 0.6percent in August FY25.
Sensitive Price Index inflation on a YoY basis increased by 2.6percent in August FY26, as compared to a decrease of 0.9percent a month earlier and an increase of 10.8percent in August FY25. On a MoM basis, it increased by 3.2percent in August FY26, as compared to 3.1percent in a month earlier and a decrease of 0.3percent in August Fy25.
WPI inflation on YoY basis decreased by 1.0percent in August FY26, as compared to a decrease of 0.5percentin the previous month and an increase of 6.3percent in August FY25. On a MoM basis, it decreased by 0.2percent in August FY26 as compared to 1.2percent in the previous month and an increase of 0.3percent in August FY25.
Measured by non-food non-energy urban inflation increased by 6.9percent on a YoY basis in August 2025 as compared to 7.0percent the previous month and 10.2percent in August 2024. On aMoM basis, it increased by0.3percent in August 2025, compared to an increase of 0.8percent measured in the previous month and an increase of 0.4percent in the corresponding month of last year i.e. August 2024.
Measured by non-food non-energy rural inflation increased by 7.8p percent on a (YoY) basis in August FY26 as compared to 8.1percent of the previous month and 14.4percent in August FY25. On a (MoM) basis, it increased by0.2percent in August FY26 as compared to 0.7percent in the previous month and an increase of 0.6percent in corresponding month of last year, ie, August FY25.
On a MoM basis prices of tomatoes increased by 19.63percent, onions 14.38percent, eggs 12.84percent, chicken 4.16percent, butter 3.21percent, fish1.46percent, Gur 0.79percent, rice 0.73percent, condiments and spices 0.64percent, meat 0.41percent, milk powder 0.34percent,and readymade food 0.26percent.
Prices of fresh fruits 21.16percent, fresh vegetables 18.48percent, potatoes 8.77percent, sugar 5.49percent, pulse
Moong 2.81percent, Gram Whole 2.16percent, Pulse Gram 2.09percent, pulse Mash 1.40percent, wheat products 1.31percent,wheat flour 1.24percent, pulse Masoor 0.82percent, and Besan 0.49percent.
Among non-food items, prices of newspapers increased by 11.93 percent, hospitals services 1.71percent, education 1.61percent, cleaning & laundering 1.41percent and doctor (MBBS) Clinic Fee by 1.21percent.
Whereas prices of liquefied hydrocarbons decreased by 7.30percent, electricity charges 6.87percent, motor fuel 1.51percent, and transport services 0.71percent.
Experts believed that since the weightage of food and non-alcoholic beverages is 40 percent in CPI, there is a likelihood that because of calamities of floods, the inflation projection of 7.5 percent and 5-7 percent made by Ministry of Finance and State Bank respectively might be exceeded.
The catastrophe caused by the ongoing floodsbadly affected the crops of essential vegetables, rice, and maize. Disruption in supply has already increased the prices of tomatoes, onions, and other vegetables in a range of 25-100 percent in cities like Karachi, Lahore, Rawalpindi, and Islamabad.
Reuters adds: Consumer price inflation slowed to 3.0 percent year-on-year in August from 4.1 percent in July, data showed on Monday, though economists warned that weeks of flooding in Punjab province could put food prices under renewed pressure.
Copyright Business Recorder, 2025
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