Pakistan’s Inflation Surges to 23-Month High in May 2026
Islamabad – Pakistan’s headline inflation accelerated sharply in May 2026, reaching its highest level in 23 months, according to the Pakistan Bureau of Statistics (PBS).The year-on-year Consumer Price Index (CPI) inflation stood at 11.7% in May 2026. This marks a significant increase from 3.5% recorded in May 2025.Urban areas: Inflation rose to 11.79%Rural areas: Inflation…
Islamabad – Pakistan’s headline inflation accelerated sharply in May 2026, reaching its highest level in 23 months, according to the Pakistan Bureau of Statistics (PBS).
The year-on-year Consumer Price Index (CPI) inflation stood at 11.7% in May 2026. This marks a significant increase from 3.5% recorded in May 2025.
Urban areas: Inflation rose to 11.79%
Rural areas: Inflation stood at 11.48%
The rise in inflation is attributed to increasing prices of food items, transport (due to fuel costs), housing, and utilities. This surge comes amid regional geopolitical tensions affecting global oil prices and supply chains, putting additional pressure on Pakistan’s import-dependent economy.
Economists warn that sustained high inflation could complicate the State Bank of Pakistan’s monetary policy decisions, especially as the central bank aims to balance growth and price stability. The development is likely to impact household purchasing power, particularly in rural regions where a large portion of the population resides.
This marks the second consecutive month of rising inflation after April 2026, raising concerns about the overall economic recovery trajectory.
