2 min read
Pakistan’s inflation rate rose sharply in September 2025, reaching 5.6% compared to 3.0% in August, according to the latest CPI report. The surge reflects faster price increases in both urban and rural areas, though inflation is still far lower than the double-digit rates recorded in 2024.
For the first quarter of FY2025-26 (July–September), average inflation stood at 4.22%, compared to 9.19% in the same period last year. This shows that while short-term prices are rising, overall inflationary pressure is easing year-on-year.
Urban and Rural Breakdown
The CPI data highlights clear trends across urban and rural regions:
| Month/Year | National CPI | Urban Inflation | Rural Inflation |
| Aug 2024 (YoY) | 2.99% | 3.38% | 2.43% |
| Aug 2025 (MoM) | -0.65% | -0.73% | -0.52% |
| Aug 2025 (YoY) | 3.0% | 3.38% | 2.43% |
| Sep 2025 (YoY) | 5.6% | 5.9% | 5.2% |
| Q1 Avg FY25-26 | 4.22% | 4.5% | 3.9% |
| Q1 Avg FY24-25 | 9.19% | 9.6% | 8.7% |
In September, food items like tomatoes, onions, and eggs saw notable price hikes, while fresh fruits, potatoes, vegetables, and sugar became cheaper. Among non-food items, newspapers, dental services, and medical tests rose slightly. However, electricity and fuel prices dropped, softening the overall impact.
Officials emphasized that despite September’s jump, inflation is significantly lower than the previous year:
“While September brought a noticeable rise in inflation, the broader trend shows prices are far more stable compared to the high pressures of 2024.”
With energy markets fluctuating globally, Pakistan’s inflation outlook will depend on international oil prices and domestic supply chain stability in the coming months.
