Pakistan inflation rises to 6.2% in October, highest in 12 months

• The CPI rose 6.2% in October, up from 5.6% a month earlier.
• Tomato prices jump 127%, sugar 34.8%, wheat 22.6%.
• Inflation for restaurants and hotels is stable at 6.1%.
  

Inflation surged to its highest level in a year in October, fueled by sharp increases in food prices after floods and border disruptions disrupted supply chains. Renewed price pressures have raised concerns about challenges facing the central bank’s cautious approach to monetary policy.

Headline inflation as measured by the consumer price index (CPI) rose 6.2% in October 2025 from a year earlier, from 5.6% in September, as food prices rose 5.6% — the fastest pace since April 2024. Perishables led the rise, with tomato prices soaring 2.6% on 134% and 134% high. wheat flour 15.7%, The News was mentioned.

Supply shocks, caused by flood-ravaged farmland and the closure of the border with Afghanistan after conflict, have squeezed agricultural trade routes and caused food shortages, spewing inflationary pressure in other sectors.

Price pressures spread beyond food, with housing and utilities inflation accelerating to 4.2% from 3.7% and transport costs jumping to 6.7% from 4.2%. Clothing and footwear rose as much as 8.1%, while miscellaneous goods and services rose to 18.2% from 14.9%.

Inflation remained steady for restaurants and hotels at 6.1% and eased slightly for household furniture at 4.0%. However, leisure and culture prices extended their decline, falling 3.7%. On a monthly basis, consumer prices rose 1.8%, driven by a sharp 14.9% rise in the cost of perishable food.

Notably, on October 27, the State Bank of Pakistan kept its key interest rate unchanged at 11% for the fourth consecutive meeting, taking a cautious approach as it faces rising inflation and a weak economic recovery. The central bank is holding off on further cuts, worried that supply problems and higher food prices could push up inflation again.

Core inflation — which excludes volatile food and energy prices — also accelerated. Core urban inflation rose to 7.5% year-on-year from 7.0% in September and 8.6% in October 2024, while core rural inflation rose to 8.4% from 7.8% and 11.7% in October 2024, underscoring persistent underlying price pressures.

Urban inflation stood at 6.0%, while in rural areas inflation was 6.6%, from 9.3% and 4.2% respectively, in the same month last year. The Wholesale Price Index (WPI) rose 1.1% in October, compared with an increase of 0.6% in the previous month and 3.9% in the same month last year.