Inflation Hits 4.7% YoY in March for Pakistan

Pakistan’s inflation remains robust as March 5 marked another week of significant price hikes, according to data from the Pakistan Bureau of Statistics (PBS). Amidst a backdrop of rising energy and food costs, the Sensitive Price Indicator (SPI) for essential commodities across urban centers showed a YoY increase of 4.70%. This was slightly below the previous peak recorded in February but underscores persistent pressure on household budgets.

Notably, natural gas rates surged by an eye-watering 29.85% during the quarter, fueling concerns over rising living costs for consumers. Wheat flour saw a robust 26.13% YoY increase, while electricity charges and LPG both rose by about 17%. Other staples like chilli powder, beef, firewood, and powdered milk followed with marked increases of up to 15%.

Despite these rises, several items witnessed substantial declines in price compared to last year’s figures. Potatoes took a significant hit, declining by an alarming 53.76%, alongside onions (26.10%), eggs (24.93%), and garlic (22.25%). Chicken prices also declined notably at 21.70%. Notably, gur (8.51%) and broken Basmati rice (6.18%) saw YoY price decreases.

On a weekly basis, the SPI increased by 0.37%, driven primarily by rising chicken and LPG costs. Other notable increases were observed in garlic (1.23%), beef (0.66%), mutton (0.65%), pulse mash (0.51%), printed lawn cloth (0.43%), gur (0.30%) and mustard oil (0.24%). Conversely, prices of essential items like tomato (-10.04%), egg (-8.13%), onion (-6.08%), and potatoes (-5.09%) declined.

Among the 51 tracked commodities, 13 saw YoY increases, a few more fell, while about two-thirds remained static. By income levels, rural areas reported higher inflation at 7.3% in February 2026 compared to urban areas’ 6.8%, highlighting regional disparities and greater economic strain on lower-income households.

Monthly Consumer Price Index (CPI) data for February 2026 also demonstrated continued upward pressure: a YoY rise of 7% from the prior year’s 5.8%, and an MoM increase of 0.3%. Rural inflation hit by this, rose to 7.3% in February 2026 compared with urban areas’ 6.8%.

Overall, these figures underscore ongoing economic challenges faced by Pakistan, particularly affecting segments of the population most vulnerable to rising prices.