Pakistan Records Surge in Inflation, Citizens Struggle as Prices Hit New Highs
Islamabad: Pakistan has witnessed a sharp rise in short-term inflation, with citizens facing significant financial pressure as the government comes under criticism for failing to control rising prices.
According to the latest data released by the Pakistan Bureau of Statistics, the Sensitive Price Indicator (SPI) increased by 14.52% year-on-year for the week ending May 14. On a weekly basis, the SPI also rose by 0.47%, indicating persistent inflationary pressure despite tight monetary conditions and economic slowdown.
The report shows steep increases in essential commodities. Petrol prices surged by 64.23% year-on-year, while diesel rose by 61.61%. Wheat flour became 57.56% more expensive, electricity bills for lower-consumption users increased by 52.58%, LPG by 48.34%, onions by 50.06%, and tomatoes by 40.66%.
Experts attribute the inflation spike to supply chain disruptions and rising transport costs. An economist associated with the Institute of Business Administration Economics, Dr. Javeed Mumtaz, stated that higher fuel prices have increased freight costs, pushing up the prices of imported goods. He also noted that regional uncertainty and hoarding behavior among the public have further intensified price pressures.
On a weekly basis, tomatoes recorded the highest increase at 22.13%, followed by wheat flour at 4.94%, diesel at 3.76%, and petrol at 3.73%. However, slight declines in chicken, eggs, and pulses were not enough to offset the overall inflationary impact.
Meanwhile, brokerage house Topline Securities has warned that Pakistan’s Consumer Price Index (CPI) could reach 11% to 11.5% in May 2026, marking a 23-month high.
Analysts caution that if the current trend in fuel, electricity, and import prices continues, low- and middle-income households may face even greater financial hardship in the coming months.
