Pakistan’s inflation eases to 11.1% in June amid lower energy prices

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Despite the slight easing, inflation during fiscal year from July 2025 to June 2026 averaged 7.05 percent, compared to 4.49 percent during the same period last year

ISLAMABAD: (UrduPoint/UrduPoint / Pakistan Point News-July 1st, 2026) Pakistan’s annual consumer inflation eased slightly to 11.1 percent in June, down from 11.7 percent in May, mainly due to lower energy costs and a decline in prices of several essential commodities, according to data released by the Pakistan Bureau of Statistics on Wednesday.

On a month-on-month basis, inflation recorded a decline of 0.3 percent, indicating modest relief for consumers after recent reductions in fuel prices.

Despite the slight easing, inflation during the fiscal year from July 2025 to June 2026 averaged 7.05 percent, compared to 4.49 percent during the same period last year.

The government has set an inflation target of 7.5 percent for the current fiscal year and projected 8.2 percent for FY27.

Analysts say inflation remains above earlier expectations, largely driven by previous increases in petroleum prices and persistent pressure on household expenses.

The data showed that transport costs declined by 7.22 percent in June compared to May, contributing significantly to the monthly drop in inflation.

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However, transport charges were still 25.72 percent higher than the same month last year.

Housing, water, electricity, gas and fuel costs rose by 15.5 percent on an annual basis, continuing to strain household budgets.

Prices of non-perishable food items also increased by 10.21 percent, reflecting continued volatility in essential goods.

Urban inflation stood at 11.2 percent year-on-year, slightly higher than rural inflation at 10.9 percent.

On a monthly basis, prices in urban areas fell by 0.5 percent, while rural inflation remained unchanged.

Food inflation reached 8.2 percent in urban areas and 9.4 percent in rural areas, while non-food inflation remained elevated at 13.1 percent in urban centres and 12.3 percent in rural regions.

Core inflation, which excludes food and energy, stood at 8.7 percent in urban areas and 7.9 percent in rural areas, indicating continued underlying inflationary pressures across the economy.

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