ISLAMABAD: Pakistan’s consumer inflation accelerated to 11.7 per cent year-on-year in May, increasing pressure on household budgets as higher energy costs, transport charges and food prices continued to drive up the cost of living across Pakistan.
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According to data released by the Pakistan Bureau of Statistics, inflation measured by the Consumer Price Index (CPI) rose 0.5pc compared to April. The latest reading exceeded earlier government projections and reflected the impact of rising petroleum prices and broader cost pressures throughout the economy.
One of the main contributors to inflation was a sharp increase in transport costs, which surged 36.78pc compared to the same month last year. On a monthly basis, transport charges rose 5.13pc, reflecting higher fuel and logistics expenses.
Housing, water, electricity, gas and fuel costs also recorded a significant annual increase of 16.78pc, adding to the financial burden on households. Non-perishable food items rose by 9.42pc year-on-year, highlighting continued volatility in the prices of essential commodities.
Inflation in urban areas stood at 11.8pc, slightly above the 11.5pc recorded in rural regions. On a monthly basis, urban prices increased 0.7pc, while rural inflation rose 0.3pc.
Food inflation reached 6.5pc in urban areas and 8.5pc in rural areas. Meanwhile, non-food inflation remained elevated at 15.2pc in urban centres and 14.2pc in rural regions, indicating persistent price pressures beyond food and energy.
Core inflation, which excludes volatile food and energy components, was recorded at 9pc in urban areas and 8.4pc in rural areas.
The latest figures come after the State Bank of Pakistan raised its policy rate to 11.50pc in April in response to rising inflationary pressures.
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During the first 11 months of fiscal year 2025-26, average inflation stood at 6.69pc, compared with 4.61pc during the same period last year. The government’s inflation target for the fiscal year remains 7pc.