ISLAMABAD (Dunya News) – Pakistan recorded a further increase in inflation during May, with the annual inflation rate climbing to its highest level in nearly two years, according to the latest monthly data released by the Pakistan Bureau of Statistics.
The report showed that inflation rose by 0.52 percent on a month-on-month basis in May compared with April, marking the highest inflation reading since June 2024.
According to official figures, the annual inflation rate accelerated to 11.66 percent in May 2026, significantly higher than the 3.5 percent recorded during the same month last year.
The latest figures indicate a continuation of upward price pressures despite earlier expectations that inflation would remain relatively contained during the current fiscal year.
Data released by the statistics bureau showed that average inflation during the period from July 2025 to May 2026 stood at 6.69 percent. In comparison, annual inflation in April 2026 had been recorded at 10.89 percent, highlighting a noticeable increase within a month.
The report further showed differences between urban and rural inflation trends. On a monthly basis, inflation in rural areas increased by 0.30 percent during May, while urban centres recorded a sharper rise of 0.68 per cent.
On an annual basis, rural inflation stood at 11.48 percent, while urban inflation reached 11.79 percent, suggesting price increases continued to affect consumers across both segments of the economy.
The latest inflation figures come at a time when policymakers are preparing the federal budget and setting economic targets for the upcoming fiscal year, with inflation management remaining among the government’s key economic challenges.
Economists say rising inflation could influence monetary policy decisions and may also affect household spending patterns as consumers continue to face higher prices for essential goods and services.