By Farooq Awan

Rising transport and energy costs emerged as the main drivers of inflation in March 2026, outweighing declines in several food items and pushing overall consumer prices higher, according to the Monthly Review on Price Indices released by the Pakistan Bureau of Statistics.

The data shows that the Consumer Price Index rose 1.18 percent month-on-month and 7.30 percent year-on-year in March, with non-food components contributing significantly to the increase.

Among major categories, transport recorded the sharpest monthly increase of 11.77 percent, while its annual increase stood at 12.49 percent. Housing, water, electricity, gas and fuels also rose notably, increasing 1.54 percent on a monthly basis and 11.49 percent compared to March last year.

These sectors contributed the most to inflation. Transport added the largest share to the monthly increase, followed by housing and utilities, which also remained a key driver on an annual basis.

Within urban areas, motor fuel prices surged during the month, alongside increases in electricity charges and transport services. Liquefied hydrocarbons also recorded a notable rise, reflecting broader pressures on energy cost.

In contrast, food prices showed some relief. Several essential items, including tomatoes, eggs, potatoes, wheat and sugar, declined on a monthly basis. However, increases in items such as chicken, fruits and vegetables limited the overall impact of food price easing.

A similar trend was observed in rural areas, where transport and housing costs increased while food prices declined overall.

The data suggests that inflation in March was largely driven by non-food factors, particularly fuel and utility-related costs, which continue to exert pressure on household budgets despite some easing in food prices.

Credit: INP-WealthPk