Inflation in Pakistan has returned to double digits. According to the Pakistan Bureau of Statistics (PBS), consumer prices rose by 11.1% year on year in August 2026, up from 9.2% in July and well above the 3.1% recorded in August 2025. Prices increased by 1.2% from the previous month, the same rate as in July. A year ago, by contrast, prices fell by 0.6% between July and August.
Rural households are being hit harder than urban ones. Rural inflation reached 12.2% in August, up from 9.9% in July and only 2.5% a year earlier, and rural prices rose by 1.6% in a single month. Urban inflation climbed to 10.4% from 8.7% in July, compared with 3.5% in August 2025, while urban prices rose by 0.9% month on month.
Wholesale prices suggest that further increases may be coming. The Wholesale Price Index (WPI) rose by 11.8% year on year, up from 9.4% in July, after falling by 1% in August 2025. Wholesale prices rose by 2% in August alone, after remaining flat in July. Diesel rose by 14.08% during the month and kerosene by 13.27%, while wholesale wheat was 92.64% more expensive than a year earlier.
Underlying inflation is also rising. Core inflation, which excludes food and energy, reached 8.8% in urban areas and 8.5% in rural areas, compared with 6.9% and 7.8% respectively a year earlier. The trimmed-mean measures, which exclude the most extreme price changes, show sharper increases: urban inflation by this measure rose to 8.9% from 7.5% in July, and rural inflation to 9.1% from 8%. These figures suggest that price pressures are spreading beyond a few volatile items.
The Sensitive Price Index (SPI), which tracks essential goods, was the only major measure to slow. It rose by 9.5% year on year in August, down from 12% in July, and by 0.9% from the previous month, compared with 2.4% in July. Even so, it remains well above the 2.6% recorded in August 2025.
Food prices remain the biggest driver. Over the past year, tomatoes have risen by 128.13%, onions by 124.28%, wheat by 86.72% and wheat flour by 73.12%. Meat is 14.69% more expensive. In August alone, onion prices jumped by 45.87%, eggs by 11.51% and wheat by 5.25%.
Some food prices have fallen. Over the year, potatoes are 23.14% cheaper, chicken 18.51% and sugar 17.01%, and several pulses have also become cheaper. In August, fresh fruit fell by 12.49% from the previous month, while beans and chicken also declined.
Energy and transport costs are also rising quickly. Motor fuel rose by 5.61% in August and is 24.43% more expensive than a year ago. Electricity charges increased by 1.70% during the month, and water supply charges by 4.15%. Liquefied hydrocarbons fell by 1.31% in August but remain 55.89% more expensive than a year earlier. Transport services have risen by 28.72% over the year.
Other household costs are increasing too. Over the year, motor vehicle tax has risen by 38.68%, postal services by 34.88% and footwear by 29.29%. Monthly price increases for medical tests, hospital services, doctors' fees and medicines indicate that healthcare is also becoming more expensive. Textbooks were the only non-food item in the index to become cheaper over the year.
The August figures show that Pakistan's period of low inflation has ended. Within a year, inflation has risen from about 3% to more than 11%. With wholesale prices and core inflation both rising, further price increases for consumers appear likely.