Pakistan’s Inflation Rises Sharply in September 2025

Pakistan’s inflation rate, measured by the Consumer Price Index (CPI), jumped to 5.6% in September 2025, up from 3.0% in August. This means prices for everyday goods and services are rising faster than they were last month. Despite this monthly spike, the bigger picture shows inflation is still much lower than last year. For the first three months of the current financial year (July to September 2025), average inflation stands at 4.22%. That’s less than half of the 9.19% seen in the same period last year. In August 2025, prices actually fell by 0.65% compared to July. Urban areas saw a slightly bigger drop (-0.73%) than rural areas (-0.52%). Some food items like tomatoes, onions, and eggs became more expensive, while fresh fruits and vegetables, potatoes, and sugar got cheaper. Non-food items like newspapers and hospital services saw price increases, but electricity and fuel costs dropped. In rural areas, onions, tomatoes, and eggs also got pricier, but fresh fruits, vegetables, and sugar became more affordable. Non-food costs like dental services and medical tests went up a bit, while electricity and fuel prices fell. Looking at the year-on-year change, prices in August 2025 were 2.99% higher than in August 2024. Urban inflation was 3.38%, while rural inflation was 2.43%. While September saw a noticeable jump in inflation, the overall trend for the year so far is much better than last year. Prices for some essentials are still rising, but the pace of increase has slowed down compared to 2024.