- CPI rises 6.2% in October, up from 5.6% a month earlier.
- Tomato prices skyrocket 127%, sugar up 34.8%, wheat 22.6%.
- Inflation held steady for restaurants and hotels at 6.1%.
Inflation surged to its highest level in a year in October, fuelled by sharp increases in food prices after floods and border disruptions disrupted supply chains. The renewed price pressures have raised concerns about challenges ahead for the central bank’s cautious monetary policy approach.
Headline inflation measured by the consumer price index (CPI) rose 6.2% in October 2025 from a year earlier, up from 5.6% in September, as food prices surged 5.6% — the fastest pace since April 2024. Perishable items led the climb, with tomato prices skyrocketing 127%, sugar up 34.8%, wheat 22.6% and wheat flour 15.7%, The News reported.
The supply shocks, triggered by flood-damaged farmlands and the closure of the Afghan border following clashes, squeezed agricultural trade routes and caused some food item shortages, spilling inflationary pressure across other sectors.
Price pressures spread beyond food, with housing and utilities inflation quickening to 4.2% from 3.7% and transport costs jumping to 6.7% from 4.2%. Clothing and footwear edged up to 8.1%, while miscellaneous goods and services surged to 18.2% from 14.9%.
Inflation held steady for restaurants and hotels at 6.1% and eased slightly for household furnishings to 4.0%. Recreation and culture prices, however, extended their decline, falling 3.7%. On a monthly basis, consumer prices rose 1.8%, driven by a sharp 14.9% spike in perishable food costs.
Notably, on October 27, the State Bank of Pakistan kept its key interest rate unchanged at 11% for the fourth meeting in a row, taking a cautious approach as it faces rising inflation and a weak economic recovery. The central bank is holding off on further cuts, worried that supply problems and higher food prices could push inflation up again.
Core inflation — which excludes volatile food and energy prices — also picked up pace. Urban core inflation climbed to 7.5% year-on-year from 7.0% in September and 8.6% in October 2024, while rural core inflation advanced to 8.4% from 7.8% and 11.7% in October 2024, highlighting persistent underlying price pressures.
Urban inflation stood at 6.0%, while rural areas saw 6.6% inflation, from 9.3% and 4.2%, respectively, in the same month last year. The Wholesale Price Index (WPI) increased 1.1% in October, as compared to an increase of 0.6% in the previous month and 3.9% in the same month of last year.
