Pakistan Bureau of Statistics has said that Pakistan’s consumer inflation rate eased slightly to 11.1 per cent in June from 11.7pc a month earlier, mainly due to lower prices of energy and essential food items.
According to data released by the Bureau of Statistics, the modest decline suggests that recent cuts in petrol and diesel prices have provided some relief to households. On a month-on-month basis, inflation decreased by 0.3pc compared to the previous month. Inflation between July 2025 and June 2026 was recorded at 7.05pc, over the 4.49pc in the corresponding months last year. This was despite a high base effect from last year.
The government has projected a revised inflation target of 7.5pc for the current fiscal year. For FY27, it has projected an inflation target of 8.2pc.
The slight decrease in prices during June was largely driven by a fall in transport, which declined by 7.22pc from the previous month of May. The transport charges in June increased by 25.72pc compared to June 2025. The SBP increased its policy rate to 11.5pc in April from the previous 10.5pc in response to rising inflation. It was kept unchanged at 11.5pc.
According to the latest report released by the Pakistan Bureau of Statistics (PBS), the government achieved its inflation target for the fiscal year 2025-26, with the annual average inflation rate remaining below the government's projected level. The report showed that average inflation for FY2025-26 stood at 7.05%, lower than the federal government's target of 7.5% for the fiscal year.
On a year-on-year basis, inflation in June 2026 was recorded at 11.07%, in line with the Ministry of Finance's forecast of 11% to 12% for the month. The PBS said inflation eased by 0.30% on a month-on-month basis in June compared with May. The annual inflation rate had stood at 11.66% in May 2026. According to the report, urban inflation declined by 0.47% month-on-month in June, while rural inflation fell by 0.03% over the same period. On an annual basis, inflation in June was 11.17% in urban areas and 10.92% in rural areas, the PBS added.
Food inflation in June increased by 8.2pc in urban areas and 9.4pc in rural areas. On a month-on-month basis, food inflation increased 1pc in urban areas and 0.9pc in rural areas. Non-food inflation reached 13.1pc in urban areas, and 12.3pc in rural regions. This indicates that non-food inflation remains very high and has steadily risen in the past few months.
In June, core inflation — excluding volatile food and energy components — stood at 8.7pc in urban areas and 7.9pc in rural areas. Urban food items that saw notable month-on-month price increases included tomatoes (90.1pc), onions (20.8pc), potatoes (17.76pc), fresh vegetables (12.55pc), wheat flour (2.17pc), wheat products (2.12pc), vegetable ghee (1.85pc), wheat (1.72pc), cooking oil (1.53pc) and fresh milk (1.27pc).
Declines were observed in the prices of chicken (22.44pc), eggs (10.74pc), moong (1.04pc), mash (0.98pc), beans (0.89pc), besan (0.64pc), grams (0.38pc), fish (0.37pc) and masoor (0.20pc).
Non-food categories also witnessed significant price hikes, including newspapers (14.84pc), dopattas (3.78pc), washing soap/detergents/match boxes (1.96pc), liquefied hydrocarbons (1.79pc), tailoring (1.74pc), major tools and equipment (1.66pc), cotton cloth (1.60pc), medical tests (1.48pc), doctor (MBBS) clinic fees (1.47pc), and furniture and furnishing (1.21pc).
Similarly, a decline was observed in the prices of motor fuel (12.06pc), personal effects (6.19pc), electricity charges (4.31pc), marriage hall charges (4.04pc), transport services (0.56pc), household textiles (0.15pc) and solid fuel (0.03pc).