Pakistan's headline inflation rises to 11.1 per cent in August

Islamabad, Sep 2 (AHN) 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.

Rural inflation increased 12.2 per cent year-on-year in August, compared with 9.9 per cent in July and 2.5 per cent in August 2025. On a month-on-month basis, rural CPI inflation rose 1.6 per cent in August, compared with an increase of 1.2 per cent in July and a decrease of 0.5 per cent in August 2025. The Sensitive Price Indicator (SPI)-based inflation increased 9.5 per cent year on year in August, compared with 12 per cent in July and 2.6 per cent in August 2025. On a month-on-month basis, SPI inflation increased by 0.9 per cent in August, compared with an increase of 2.4 per cent in July and 3.2 per cent in August 2025.

Pakistan recorded a current account deficit of 328 million US dollars in July 2026, down from 814 million dollars in June and 529 million dollars in July 2025, according to data released by the State Bank of Pakistan (SBP) last month. The narrowing deficit was supported by a rise in goods exports, which increased 17 per cent month on month and 9 per cent year on year to 3 billion dollars, the highest monthly level in 19 months.

The services account also remained in deficit during July, with services exports standing at 927 million dollars against imports of 1.16 billion dollars, resulting in a services trade deficit of 228 million dollars. As a result, the overall trade deficit in goods and services widened to 3.37 billion dollars during the month. Workers' remittances amounted to 3.6 billion dollars during July, while other current transfers contributed an additional 252 million dollars.