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Pakistan Sees Sharp Surge in Inflation, CPI Reaches Two-Year Peak

Muhammad Ali (Web Desk Reporter) by Muhammad Ali (Web Desk Reporter)
June 2, 2026
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Islamabad: According to the latest monthly report of the Pakistan Bureau of Statistics, the inflation rate in the country has once again recorded a significant increase, after which inflation has reached a 23-month high. According to official data, the annual inflation rate has increased to 11.66 percent in May 2026, which is the highest level since June 2024.


The report states that the inflation rate increased by 0.52 percent in May compared to April 2026, which indicates that price pressures continue to persist. This rate was recorded at 10.89 percent in April, while it was only 3.5 percent in May 2025, which indicates that prices have seen a significant increase in the past year.


According to the Bureau of Statistics, the average inflation rate from July 2025 to May 2026 was 6.69 percent, but this trend has been increasing again in recent months. According to experts, this increase is mainly the result of fluctuations in the prices of food, energy and daily necessities.


The report also presents data for urban and rural areas separately. In May 2026, inflation increased by 0.68 percent on a monthly basis in urban areas, while this increase was recorded at 0.30 percent in rural areas. On an annual basis, inflation in urban areas has reached 11.79 percent while in rural areas it has reached 11.48 percent, which shows almost equal pressure in both regions.


Economists say that this increase in inflation is a significant challenge for the government, especially at a time when the public is already under pressure from rising prices and limited income.

According to him, if the prices of basic food items and energy are not stabilized, inflation may increase further in the coming months.
The report of the Bureau of Statistics also makes it clear that the overall price index continues to fluctuate continuously, which reflects the uncertain situation in the economy.

For government economic policymakers, this situation highlights the need not only to control inflation but also to increase public relief measures.

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Muhammad Ali (Web Desk Reporter)

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Muhammad Ali is a Web Desk Reporter at The Pakistan Observer, contributing to the publication’s digital news coverage with a focus on timely, accurate and reader-friendly reporting.

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