Inflation in Pakistan Eases to 10.26% in September 2026; SBP Rate at 11.5%
Inflation in Pakistan was 10.26% in September 2026, down from 11.1% in August. PBS figures, SBP policy rate and what it means for savings and loans.
Inflation in Pakistan was 10.26% year on year in September 2026, down from 11.1% in August but nearly double the rate of a year earlier, according to the Pakistan Bureau of Statistics (PBS). The State Bank of Pakistan (SBP) kept its policy rate at 11.5% on 14 September, and its next decision is due on 26 October 2026.
Inflation in Pakistan: September 2026 figures
| Measure | September 2026 |
|---|---|
| National CPI, year on year | 10.26% |
| National CPI, month on month | 1.27% |
| Average, July–September 2026 (Q1 FY27) | 10.20% |
| Urban CPI, year on year | 10.12% |
| Rural CPI, year on year | 10.47% |
| Core inflation (non-food, non-energy), urban | 8.6% |
| Wholesale prices (WPI), year on year | 13.3% |
Source: PBS CPI press release and monthly review for September 2026.
Three-month trend
| Month (2026) | CPI inflation, year on year |
|---|---|
| July | 9.2% |
| August | 11.1% |
| September | 10.26% |
Inflation in Pakistan returned to double digits in August after easing in July, then slowed slightly in September. Even so, the first-quarter average of 10.20% is far above the 4.30% recorded in the same quarter last year, so price pressure has clearly picked up in FY27.
What is driving prices
Prices still rose 1.27% in a single month, with urban prices up 1.31% and rural prices up 1.23% over August. The Finance Division had forecast inflation of 10% to 11% for September and said the path ahead depends heavily on international oil prices. Fuel and electricity costs have kept pressure on household budgets.
The 13.3% rise in wholesale prices is worth watching. Wholesale costs often pass through to shop prices with a lag, which could slow any further easing in consumer inflation.
SBP policy rate and inflation in Pakistan
At its 14 September meeting, the SBP’s Monetary Policy Committee kept the policy rate unchanged at 11.5% (SBP). The same rate was held at the July meeting. The SBP’s medium-term inflation target is 5% to 7%.
With inflation at 10.26%, the gap between the policy rate and inflation, often called the real interest rate, has narrowed to about 1.2 percentage points. A year earlier, when inflation was below 6%, that gap was much wider. This is one reason some analysts had expected a rate rise in September, although most surveyed by Arif Habib Limited expected no change.
What it means for you
- Savings: bank profit rates track the policy rate. With inflation above 10%, savings earning less than that are losing value in real terms.
- Loans: car, home and personal financing rates are unlikely to fall while the policy rate stays at 11.5%.
- Household budget: fuel and electricity remain the main pressure points, so watch the fortnightly petrol price and monthly power tariff adjustments.
What to watch next
PBS will release October inflation data in early November, and the SBP’s next Monetary Policy Committee meeting is scheduled for 26 October 2026. For more economic news, visit our business section or read about digital banks in Pakistan and the income tax return deadline 2026.
Frequently asked questions
What is the current inflation rate in Pakistan?
10.26% year on year in September 2026, according to PBS.
What is the SBP policy rate now?
11.5%, kept unchanged on 14 September 2026.
When is the next SBP monetary policy decision?
The Monetary Policy Committee is scheduled to meet on 26 October 2026.
