Islamabad, June 1, 2026: Inflation in Pakistan surged to a 23-month high in May 2026, according to the latest monthly report issued by the Pakistan Bureau of Statistics (PBS).
The report stated that inflation increased by 0.52 percent in May compared to April, while the annual inflation rate rose sharply to 11.66 percent, up from 3.5 percent in the same month last year.
Economists and official projections suggest that inflationary pressures are likely to persist in the new fiscal year, with estimates indicating an average inflation rate of around 8.6 percent for 2026–27. The Governor of the State Bank has also warned that inflation could remain near 7 percent in the broader outlook.
The PBS data shows that from July 2025 to May 2026, average inflation stood at 6.69 percent, while April 2026 recorded a year-on-year rate of 10.89 percent.
On a monthly basis, inflation in rural areas increased by 0.30 percent, while urban areas saw a sharper rise of 0.68 percent in May. The annual inflation rate was recorded at 11.48 percent in rural areas and 11.79 percent in urban centres.
The report highlights that the latest surge has pushed inflation to its highest level in nearly two years, adding further strain on household budgets already affected by rising food and energy prices.