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Inflation in Pakistan accelerates, annual increase of 5.80 percent recorded in January

Mohsin Ali (Business Staff Reporter) by Mohsin Ali (Business Staff Reporter)
February 2, 2026
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Islamabad: The latest monthly report of the Federal Bureau of Statistics has presented a worrying picture for citizens, according to which the inflation rate is accelerating again with the beginning of the new year.
According to the data, the inflation rate increased to 5.80 percent on an annual basis in January, while a 0.39 percent increase in prices was recorded in just one month. The average inflation from July 2025 to January 2026 was 5.24 percent.
Many basic commodities of daily use became expensive. The price of live broiler chicken increased by more than 16 percent, wheat by 10 percent, tomatoes by 7 percent and flour by about 5 percent. In addition, the prices of fruits, spices, fish, bakery products and pulses also increased.
According to the report, there was also an increase in household expenses. The increase in the prices of house rent, construction materials, labor, water supply and vehicle parts has put additional pressure on the middle class.
However, some items also got relief. The prices of onions and potatoes decreased by 28 percent, while vegetables became cheaper by 16 percent. The prices of sugar, eggs and motor fuel also decreased.

According to economists, the rising cost of food and transport is the main reason for the increase in inflation. They say that if the supply chain does not improve, prices may increase further in the coming months.

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