Inflation Rises to 5.6% in September, Says PBS

ISLAMABAD: Core inflation in Pakistan rose to 5.6% in September 2025, according to the Pakistan Bureau of Statistics (PBS). This marks a significant increase compared to 3.0% in August. The monthly inflation rate also surged by 2.6%, nearly double the previous month. In contrast, August saw a slight decrease of 0.6%. This sharp rise has raised concerns among consumers and policymakers.

Urban inflation also showed a steep climb in September. It rose to 5.5% compared to 3.4% in August. Meanwhile, rural inflation increased to 5.8%, up from 2.4% the previous month. These figures reflect a broad-based rise in prices across the country. The jump in both urban and rural inflation signals growing pressure on household budgets. This trend is worrying for low- and middle-income families.

The Consumer Price Index shows that food prices increased by 4.4% in September. Non-food items saw an even larger jump of 6.0%. These increases have affected essential goods, pushing up daily living costs. The Ministry of Finance had earlier predicted a 3.5% to 4.5% rise in inflation. However, the actual increase exceeded these expectations, highlighting deeper inflationary pressures.

From July to September, inflation averaged 4.22% in the first quarter of the fiscal year. This suggests that inflation may continue to rise in the coming months. Economic experts believe rising energy costs and supply disruptions may be driving the trend. Continued increases in prices could impact growth and reduce consumer spending. The government may need to adjust policies to stabilize inflation.

In summary, inflation rose sharply in September, hitting both urban and rural households. The rise in both food and non-food prices is a concern. As inflation exceeds forecasts, economic planners face new challenges. Authorities will now watch upcoming data closely to assess further risks. The government may need stronger action to control future price hikes.