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2026-11-02 19:00:25
[Pakistan's inflation fell for the third consecutive month in October, but energy pressures remain] ⑴ Pakistan's year-on-year inflation rate fell to 9.4% in October 2026, down from 10.1% in September, marking the third consecutive month of decline. However, it remains significantly higher than the central bank's policy target range of 5%-7%. The country's heavy reliance on imported energy, coupled with high international oil prices, introduces uncertainty into future price trends. ⑵ Year-on-year increases in housing utilities, telecommunications, and catering/hotel sectors all narrowed to varying degrees; overall food inflation cooled, with fresh food prices declining, although price increases for shelf-stable foods rebounded, providing support for the food sector. ⑶ Due to rising fuel costs, transportation sector inflation continued to rise, becoming the main driver of overall price increases; the consumer price index rose 1.0% month-on-month in October, a slower pace of increase compared to 1.2% in September. (4) Market analysts believe that the divergent trends within the food sector and persistently high energy costs mean that the downward process of inflation will not be achieved overnight. A continued tight monetary policy stance is still needed for inflation to gradually move towards the target range.
