Pakistan Inflation 6.2% as Food Prices Spike

Pakistan’s annual consumer inflation accelerated to 6.2% in October 2025, the highest in 12 months, while month-on-month CPI rose 1.8%. The rise was driven largely by flood-related crop damage and temporary Pak‑Afghan border closures that disrupted supplies and sent perishable prices sharply higher — tomatoes +127%, sugar +35%, butter +29.6%, wheat +22.6% and wheat flour +15.7% — lifting perishable food costs 14.9% month‑on‑month. Core inflation climbed too, with urban core at 7.5% (from 7.0%) and rural core at 8.4% (from 7.8%), signalling underlying pressures beyond one-off shocks. Producer/wholesale inflation rose 1.1% year‑on‑year in October, the largest increase since December, led by food, beverages, tobacco, textiles and leather. The State Bank of Pakistan held its policy rate at 11% for a fourth straight meeting and authorities and multilateral forecasters revised near‑term inflation projections upward. While some high‑frequency indicators and crop yields have improved, policymakers warned risks remain from global commodity volatility, domestic energy prices and ongoing trade disruptions.