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Pakistan Inflation Jumps to 6.2% in October, Highest in 12 Months

Rising core prices signal broader pressures beyond volatile food.

Overview

  • Official data show consumer prices rose 6.2% year on year in October and 1.8% from September, reversing recent moderation.
  • Authorities linked the acceleration to August flood damage and restricted PakistanAfghanistan border trade that tightened food supplies.
  • Core inflation strengthened to 7.5% in urban areas and 8.4% in rural areas, pointing to persistent underlying pressure.
  • Food costs surged, with tomatoes up about 127%, sugar near 35%, and notable increases in wheat and wheat flour reported across outlets.
  • The State Bank of Pakistan kept its policy rate at 11% on Oct. 27, cautioning inflation will stay above its 5–7% target for a few months before easing next fiscal year.