Overview

• The Pakistan Bureau of Statistics reported CPI up 5.6% year over year in September, a 2.0% monthly rise that exceeded the Finance Ministry’s 3.5–4.5% projection.
• Rural prices climbed faster than in cities, with rural inflation at 2.8% month over month and 5.8% year over year versus 1.5% and 5.5% in urban areas.
• Food-driven increases were concentrated in perishable items such as tomatoes, onions and eggs, while lower electricity and fuel costs provided some offset.
• The government has declared climate and agriculture emergencies, and assessments of Kharif crop and livestock damage are underway.
• Officials point to an improving backdrop with a rebound in large-scale manufacturing, firm remittances and foreign-exchange reserves around $19.8 billion in mid-September.