ISLAMABAD: Pakistan’s inflation rate reached 7.3% year-on-year in March 2026, amid ongoing regional tensions, according to the Pakistan Bureau of Statistics (PBS),. The consumer price index (CPI) for March showed a notable increase from 7% in February 2026 and was at 0.7% in the same month last year.
On a monthly comparison, the CPI rose by 1.2% in March 2026, a sharper increase than the 0.3% recorded in February, and also higher than the 0.9% rise seen in March 2025. Over the nine months of the current fiscal year, cumulative inflation stood at 5.67%, showing a slight uptick from 5.25% during the same period last year.
Breaking down the data regionally, urban CPI inflation accelerated to 7.4% YoY in March 2026, up from 6.8% in February, and from 1.2% in March 2025. The month-on-month rise in urban areas was 1.3%, compared to 0.3% in February and 0.8% in March 2025. Rural CPI inflation also increased, hitting 7.2% YoY in March 2026, slightly down from 7.3% in February but unchanged from March 2025. The rural monthly inflation was 1.0%, compared to 0.3% in February and 1.1% in March 2025.
The Finance Division’s Monthly Economic Update & Outlook for March 2026 projected inflation to stay within the 7.5-8.5% range. It highlighted expectations of robust remittance inflows, driven partly by Eid-related transfers, though this will depend on economic conditions in the recipient countries.
Financial analysts have also weighed in on the outlook. Arif Habib Limited forecasted inflation to settle near 7.6% YoY, while JS Global projected a rate of 7.3%, aligning with the official PBS figures.
