By Ayesha Saba

Pakistan's consumer inflation, measured by the Consumer Price Index (CPI), eased to 9.2% in July 2026 from 11.1% in June, as lower transport and energy costs helped moderate overall price pressures. On a monthly basis, CPI inflation rose 1.2%, a deceleration from the 2.9% increase in July last year, according to the Pakistan Bureau of Statistics (PBS) Monthly Review on Price Indices.

The latest figures show that inflationary pressure moderated across both urban and rural areas.

Urban inflation declined to 8.7% year-on-year from 11.2% in June, while rural inflation slowed to 9.9% from 10.9%.

Falling transport and energy-related costs helped contain the overall monthly increase. At the national level, the transport index declined by 5.24%, reducing headline inflation by 0.41

percentage points. Housing, water, electricity, gas and fuel costs also fell by 0.62%, subtracting another 0.13 percentage points from the monthly CPI movement.

Urban consumers received relief from an 8.25% decline in motor fuel prices, a 7.64% reduction in liquefied hydrocarbons and a 5.39% fall in transport services. Electricity charges also

decreased by 3.36%. Together, these movements brought the urban transport index down by 5.68%.

A similar trend was recorded in rural areas, where motor fuel prices declined by 8.72%, liquefied hydrocarbons by 17.50% and electricity charges by 3.36%. Consequently, the rural transport index fell by 4.49%, while housing and utility costs dropped by 1.77%.

The easing in headline inflation was also visible in the 20% weighted trimmed-mean measures.

Urban trimmed inflation declined to 7.5% year-on-year from 9.6% in June, while the rural rate moderated to 8% from 9.3%.

Non-food non-energy core inflation remained comparatively stable. The urban rate edged down to 8.6% from 8.7%, whereas rural core inflation rose slightly to 8.1% from 7.9%.

Food prices remained the main source of pressure during July. The national food and non-

alcoholic beverages index increased by 4.16% month-on-month and 10.64% year-on-year.

Perishable food items recorded a sharp monthly rise of 17.69%, while non-perishable items became 2.31% more expensive.

Tomatoes registered the largest monthly increase, rising by 116.75% in urban areas and 105.46% in rural areas. Urban prices also rose for fresh vegetables, potatoes, onions, chicken and eggs.

These increases were partly offset by lower prices of fresh fruits, pulses and sugar. Urban fresh- fruit prices fell by 5.51%, while rural fresh fruits became 5.38% cheaper.

Credit: INP-WealthPk