Pakistan's headline inflation rises to 11.1 per cent in August
Pakistan's headline inflation surged to 11.1% year-on-year in August, an increase from 9.2% in July, according to data released by the Pakistan Bureau of Statistics. Both urban and rural inflation rates also rose, although the country's current account deficit narrowed in July due to a significant increase in goods exports.
Why it matters
Rising inflation directly impacts the cost of living for Pakistani citizens, eroding purchasing power and potentially leading to economic instability. While the narrowing current account deficit offers a positive sign for the country's external finances, the overall economic picture remains challenging for households.
Islamabad, Sep 2 (IANS) Pakistan's headline inflation rose to 11.1 per cent year on year in August, up from 9.2 per cent in July, according to data released by the Pakistan Bureau of Statistics (PBS). The Consumer Price Index (CPI)-based inflation stood at 3.1 per cent in August 2025, PBS data showed.
On a month-on-month basis, inflation increased by 1.2 per cent in August, unchanged from the previous month and compared with a decrease of 0.6 per cent in August 2025, Xinhua news agency reported. Urban inflation rose 10.4 per cent year-on-year in August, up from 8.7 per cent in July, while it stood at 3.5 per cent in August 2025. On a month-on-month basis, urban CPI inflation increased by 0.9 per cent in August, compared with an increase of 1.2 per cent in July and a decrease of 0.7 per cent in August 2025.
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