Pakistan’s Inflation Rises to Highest Level in 19 Months

Pakistan’s inflation surged to its highest level in 19 months in March 2026, as both consumer and wholesale prices accelerated sharply, according to Arif Habib Limited (AHL).

The Consumer Price Index (CPI) general rose by 7.3 percent year-on-year (YoY), up from 7.0 percent in February and 0.7 percent in March 2025. On a month-on-month (MoM) basis, CPI increased by 1.2 percent, compared to 0.3 percent in the previous month and 0.9 percent a year ago.

ALSO REAUrban CPI inflation rose 7.4 percent YoY, higher than 6.8 percent in February and 1.2 percent in March 2025, while MoM it increased by 1.3 percent, up from 0.3 percent in the previous month. Rural CPI recorded a YoY increase of 7.2 percent, slightly below February’s 7.3 percent, and no change was observed in March 2025. MoM rural inflation rose by 1.0 percent compared to 0.3 percent in February.

The Sensitive Price Index (SPI) increased 5.6 percent YoY in March, after rising 4.8 percent in February and falling 2.3 percent in March 2025. MoM, SPI rose 0.7 percent, reversing a 0.1 percent decrease in the previous month. The Wholesale Price Index (WPI) showed a sharp 6.7 percent YoY increase, up from 1.0 percent in February and down 1.6 percent in March 2025. MoM WPI rose by 5.9 percent, sharply higher than 0.7 percent last month.

Core inflation measured by non-food non-energy (NFNE) items also increased. Urban NFNE rose 7.4 percent YoY, up from 7.1 percent in February and 8.2 percent in March 2025, while MoM it increased by 0.7 percent, up from 0.2 percent last month. Rural NFNE rose 8.4 percent YoY, slightly higher than February’s 8.3 percent and below March 2025’s 10.2 percent, with a MoM increase of 0.8 percent compared to 0.4 percent previously.

Trimmed mean core inflation, which excludes extreme price movements, rose 5.9 percent YoY in urban areas, up from 5.1 percent last month and 4.8 percent a year ago, with MoM growth of 0.6 percent. Rural trimmed mean inflation increased 6.3 percent YoY, compared to 5.6 percent in February and 4.8 percent in March 2025, with a MoM rise of 0.5 percent.