Overview
- Consumer prices fell 0.4% from November, led by a 1.7% monthly drop in food, especially perishables, according to official data.
- Urban inflation was 5.8% year on year and rural 5.4%, with monthly declines of 0.4% and 0.6%, respectively.
- The headline rate eased from 6.1% in November and is far below the 2023 peak above 30%, according to the Pakistan Bureau of Statistics.
- The central bank says inflation has recently sat within its 5%–7% target range and warns base effects could push readings higher toward June as underlying pressures persist.
- Average inflation in the first half of FY2026 was 5.15%, down from 7.22% a year earlier, with the finance ministry’s 5.5%–6.5% December projection proving accurate as private estimates ran slightly higher.