ISLAMABAD: : The annual inflation rate in Pakistan reached 11.7% in May 2026, as per the latest data from the Pakistan Bureau of Statistics. This marks an increase from 10.9% recorded in April 2026 and a significant rise from 3.5% a year earlier in May 2025.
The inflation remained steady across urban areas at 11.7%, while rural regions experienced a slight decrease to 11.5%. Core inflation, excluding food and energy, stood at 9.8%, indicating persistent price pressures in key sectors.
Over the past year, several sectors saw notable price hikes. Transportation costs surged by 37%, and housing, electricity, gas, and fuel expenses increased by 17%. Food prices rose by 8%, with education costs increasing by over 8%, and healthcare services climbing by approximately 7.5%. The hospitality industry also saw charges for restaurants and hotels grow by nearly 6%.
In terms of clothing and footwear, prices jumped by approximately 8.77%, while wheat flour prices soared by over 11% monthly. The market value of wheat also increased by nearly 8%, reflecting rising food inflation. Daily essentials like potatoes, bakery items, meat, and powdered milk experienced price hikes, and staples such as milk, cooking oil, and ghee became costlier.
Other notable increases included shoe prices, which climbed by 29%, and postal services, which saw a 9% rise in charges during May. Overall, inflation continues to exert pressure on household expenses across Pakistan.
