03.11.202510:47:43UTC+00Pakistan Inflation Rate Highest in a Year

In October 2025, Pakistan experienced a significant rise in its annual inflation rate, reaching 6.2%—the highest in a year—up from 5.6% in September. This increase was primarily driven by food price hikes, marking the most substantial rise since April 2024 (5.6% compared to 5% in September). The surge in food prices was largely due to the aftermath of severe flooding and border closures with Afghanistan, resulting from clashes that disrupted trade and exacerbated food shortages. Notably, the most significant price hikes were observed in tomatoes, with an increase of 126.96%, followed by sugar at 34.83%, butter at 29.63%, wheat at 22.56%, honey at 17.78%, and wheat flour at 15.69%.

Inflation also rose in other sectors: housing and utilities saw a rise to 4.2% from 3.7%, transport increased to 6.7% from 4.2%, and clothing and footwear edged up to 8.1% from 8.0%. Additionally, the miscellaneous goods and services category experienced a notable increase to 18.2% from 14.9%. In contrast, inflation rates remained stable for restaurants and hotels at 6.1% and showed a slight decrease for furnishing and household equipment maintenance, dropping to 4% from 4.1%. There was also a decline in prices for recreation and culture, down 3.7% from a previous -2.7%. On a monthly basis, consumer prices increased by 1.8%, primarily driven by a substantial 14.9% rise in the cost of perishable food items.