Pakistan inflation hits 11.1% in June 2026
- Inflation stood at 7.05% in FY26
Pakistan's headline inflation eased to 11.1% year-on-year in June 2026, down from 11.7% in May, with government anticipating further moderation due to global factors.
- Urban and rural inflation rates in June 2026.
- Government's inflation outlook and global factors.
- State Bank of Pakistan's unchanged policy rate.
Headline Inflation YoY
Pakistan’s headline inflation clocked in at 11.1% on a year-on-year (YoY) basis in June 2026, as shown by Pakistan Bureau of Statistics (PBS) data on Wednesday.
The consumer price index (CPI) was recorded at 11.7% in May 2026. The CPI stood at 3.2% in June 2025.
On a month-on-month basis, it decreased by 0.3% in June 2026 as compared to an increase of 0.5% in the previous month and an increase of 0.2% in June 2025.
During the last fiscal year 2025-26, inflation stood at 7.05% against 4.49% recorded in the same period last year.
“The YoY uptick in inflation has largely been driven by increases in energy and transportation costs due to rising oil prices amid ongoing geopolitical tensions,” said Arif Habib Limited (AHL), in a note.
Urban CPI inflation increased by 11.2% on a year-on-year basis in June 2026, as compared to an increase of 11.8% in the previous month and an increase of 3.0% in June 2025.
On a month-on-month basis, it decreased by 0.5% in June 2026 as compared to an increase of 0.7% in the previous month and an increase of 0.1% in June 2025.
Rural CPI inflation increased by 10.9% on a year-on-year basis in June 2026 as compared to an increase of 11.5% in the previous month and an increase of 3.6% observed in June 2025.
On a month-on-month basis, no changes were observed in June 2026 as compared to an increase of 0.3% in the previous month and an increase of 0.5% in June 2025.
Government expectations
In its latest monthly outlook, the Ministry of Finance noted that the recent easing of geopolitical tensions, due to the ongoing peace efforts in the Middle East, has improved global market sentiment.
Consequently, international crude oil prices have eased from their recent highs, which is expected to reduce imported inflationary pressures and help lower domestic fuel and transportation costs.
“Inflation is anticipated to remain within the range of 11-12% for June 2026,” it said, adding that lower international oil prices are also expected to support the external account by containing the oil import bill.
Last month, the Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) decided to keep the policy rate unchanged at 11.5%. It is assessed that inflation in June will remain in double digits for the next few months, before gradually easing subsequently.
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