Inflation Hits 21-Month High as Pakistan’s Finance Ministry Forecasts Prove Incorrect

Islamabad: Inflation in Pakistan has surged to a 21-month high, exceeding forecasts issued by the Ministry of Finance, according to the latest data released by the Pakistan Bureau of Statistics.
The report shows that annual inflation in April 2026 reached 10.89%, significantly higher than the government’s earlier projection of 8% to 9% in its economic outlook report.
On a monthly basis, inflation increased by 2.48%, reflecting continued pressure on consumer prices across multiple sectors.
According to the statistics bureau, transport fares increased by 30% over the past year, while food prices rose by 7.63%. Perishable food items saw an increase of 10.20%, while housing, water, electricity, and gas costs climbed by 16.84%. Clothing and footwear rose by 6.20%, and hotel and restaurant charges increased by 5.28%.
The report highlighted sharp price hikes in essential food items, including tomatoes, which surged by over 57%, and vegetables, which increased by up to 40%. Egg prices rose by 14%, onions by 9%, and potatoes by 4%. Prices of milk and dairy products also recorded an upward trend.
Meanwhile, some relief was observed in wheat and flour prices, which declined by around 9% and 5% respectively. Fish, fresh fruits, sugar, gram flour, pulses, and cooking oil also saw slight decreases.
However, major increases were recorded in energy and transport-related costs, with LPG prices rising by more than 38%, transport services by 27%, and petroleum products by 18%. Rental charges and construction materials also continued to become more expensive.
Economists warn that persistent inflation is likely to further impact household budgets, especially among low and middle-income groups, as essential goods and services continue to fluctuate.