Overview
- Consumer prices rose 6.2% year over year in October and 1.8% from September, marking the strongest annual reading in 12 months, according to the Pakistan Bureau of Statistics.
- The State Bank of Pakistan left its policy rate at 11% for a fourth straight meeting and projects inflation will stay above its 5%–7% target for several months even as some indicators improve.
- Core inflation strengthened, with non-food, non-energy prices up 7.5% in urban areas and 8.4% in rural areas, signaling firmer underlying pressures.
- Authorities tie the resurgence to August floods that killed more than 1,000 people, displaced about 2.5 million in Punjab, and damaged crops and factories, tightening food supplies.
- Trade disruptions on the Afghanistan border persisted after an Oct. 11 ceasefire extension, contributing to regional shortages and sharp price moves such as tomatoes up 127% and sugar up 35%.