Pakistan’s inflation reached its highest level in 19 months in March 2026, reflecting sharp rises in consumer and wholesale prices. The Consumer Price Index (CPI) increased by 7.3 percent year-on-year (YoY), up from 7.0 percent in February. On a month-on-month (MoM) basis, CPI rose by 1.2 percent, compared to 0.3 percent in February.
Urban CPI inflation in Pakistan climbed 7.4 percent YoY, higher than February’s 6.8 percent, while MoM it increased by 1.3 percent. Rural areas recorded a CPI rise of 7.2 percent YoY, slightly below February’s 7.3 percent, with a 1.0 percent MoM increase. The Sensitive Price Index (SPI), which tracks essential goods, grew 5.6 percent YoY and 0.7 percent MoM.
Wholesale prices in Pakistan also saw significant growth. The Wholesale Price Index (WPI) surged 6.7 percent YoY, up from just 1.0 percent in February. On a MoM basis, WPI jumped 5.9 percent, far above last month’s 0.7 percent rise.
Core inflation, excluding food and energy items, also showed upward pressure. Urban non-food non-energy (NFNE) inflation increased 7.4 percent YoY and 0.7 percent MoM, while rural NFNE rose 8.4 percent YoY and 0.8 percent MoM. Trimmed mean core inflation, which removes extreme price swings, rose 5.9 percent YoY in urban areas and 6.3 percent in rural regions, with MoM growth of 0.6 percent and 0.5 percent, respectively.
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Economists say Pakistan’s rising inflation may reduce consumer purchasing power and put pressure on policymakers. The surge highlights the need for careful monetary management and targeted support for vulnerable households. Analysts warn that food and energy price increases could continue affecting both urban and rural residents, potentially impacting Pakistan’s economic stability in the coming months.
