Pakistan Inflation Surges to 5.6% in September 2025

02/10/2025

The average inflation rate in the country during the first quarter (July-September) of the current fiscal year 2025-26 has been 4.22 percent. However, the annual inflation rate in the last month (September) reached 5.6 percent.

This rate is higher than the Ministry of Finance’s estimate of 3.5 to 4 percent for September.

The Federal Bureau of Statistics has released its monthly report on inflation, which shows that the inflation rate increased by 2 percent in September compared to August.

Officials said that the Finance Ministry had estimated inflation between 3.5 and 4.5 percent for September. According to the statistics bureau, the average inflation for the July-September quarter was 4.22 percent.

The report also noted that the annual rate of inflation was recorded at 2.99 percent in August 2025, while in September 2024, it had risen to 6.9 percent.

The Bureau of Statistics said that during September 2025, monthly inflation increased by 2.8 percent in rural areas and 1.5 percent in urban areas.

In its Monthly Economic Review and Outlook for September 2025, the Finance Ministry said that the agriculture sector is likely to be affected by the ongoing floods of 2025, noting that flood-related disruptions could put pressure on the food supply chain, leading to higher prices.

The ministry added that this would cause a temporary increase in inflation, but it was expected to remain under control between 3.5 and 4.5 percent in September 2025.

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