Overview
- The Pakistan Bureau of Statistics released data on Thursday showing headline CPI at 10.3 percent year‑on‑year for September 2026 and a 1.3 percent month‑on‑month rise.
- A sharp jump in energy costs is the main driver of the increase, with petrol and electricity up roughly 39 percent and 33 percent year‑on‑year respectively and large monthly gains in fuel and power prices.
- The government is offering targeted help through the Prime Minister’s Fuel Relief Scheme that sends digital support to low‑income households while keeping the petroleum levy in place to protect fiscal discipline.
- Stronger remittances and a $3.0 billion Eurobond issued in September have boosted liquid reserves to about $21.4 billion, giving Pakistan larger external buffers to absorb a higher oil import bill.
- Core inflation remains stuck at about 8–9 percent, which limits scope for quick disinflation and leaves analysts warning that headline inflation is likely to stay high into early 2027 unless global oil prices fall.