Pakistan’s inflation rate reached 7% in February 2026, according to the Pakistan Bureau of Statistics (PBS). This marks a slight increase from January and aligns with the Ministry of Finance’s estimate of 6-7%. On a monthly basis, the Consumer Price Index (CPI) went up by 0.3%, indicating slow but steady price rises across the country.
The CPI had recorded 5.8% in January 2026 and 1.5% in February 2025, showing a clear upward trend over the year. Urban areas saw a 6.8% increase in prices, while rural areas faced a slightly higher rise of 7.3%. Monthly comparisons indicate a 0.3% increase in both urban and rural CPI, maintaining the trend of gradual price growth.
SBP Governor Jameel Ahmad announced in a press conference that inflation in Pakistan could be above 7% in some months of the current fiscal year’s second half.
Economists had expected inflation to rise slightly due to increases in electricity and gold prices, while the Finance Division had forecasted a 6-7% range for February. The State Bank of Pakistan (SBP), however, chose to keep its benchmark policy rate steady at 10.5% during its first Monetary Policy Committee meeting of 2026, surprising markets that anticipated a cut.
Over the first eight months of the fiscal year (8MFY26), overall inflation averaged 5.46%, slightly lower than 5.85% in the same period last year. Analysts note that energy costs, supply chain pressures, and international commodity prices continue to influence household expenses, especially for low and middle-income families.