ISLAMABAD (Kashmir English): The inflation rate in Pakistan reached its highest level in nearly two years (23 months) during May 2026.
The development has put a pressure on the national economy and raised economic concerns before the start of the new fiscal year.
According to the latest monthly report released by the Bureau of Statistics, the inflation rate in May increased by 0.52% on a monthly basis compared to April. It said this is the highest level of inflation in the country since June 2024.
According to the report, on an annual basis, the inflation rate in May 2026 rose to 11.66%, which is a significant increase compared to the 3.5% rate recorded in the same month last year (May 2025).
This rate is also higher than the 10.89% annual inflation of April this year, indicating a continuous and uncontrolled increase in the prices of consumer goods.
Average inflation rate
According to the report, the average inflation rate during the first 11 months of the current fiscal year (July 2025 to May 2026) was 6.69%.
The data shows the effects of inflation were felt with equal intensity in both urban and rural areas, contrary to the traditional trends in the country’s history.
The report said inflation in rural areas increased by 0.30% on a monthly basis, while in urban areas, this increase was recorded at 0.68%.
Similarly, on an annual basis, the inflation rate in rural areas reached 11.48%, while in urban areas, it was 11.79%.
This comparison shows that the effects of price increases are not limited to one segment but have spread equally across the country. This continuous increase has severely affected the purchasing power of the public, while all essential goods and services, including food, transport, and utility services (electricity, gas), are becoming out of reach for the common person.
The federal government is likely to announce the 2026-27 budget on Friday, and before that, rumors of a possible increase in petroleum levy and the fear of new taxes have also promoted hoarding and pre-emptive price increases in the market, which is directly reflected in the May figures.
