INP-WealthPk

Housing and utility costs rise sharply, adding to inflation pressures in April

May 07, 2026

By Ayesha Saba

Housing and utility-related costs recorded a significant increase in April 2026, emerging as a major contributor to overall inflation during the month.

According to the “Monthly Review on Price Indices April 2026” released by the Pakistan Bureau of Statistics and available with Wealth Pakistan, the housing, water, electricity, gas and fuels group increased by 16.84% on a year-on-year basis at the national level.

On a month-on-month basis, the group recorded an increase of 2.43% in April compared to March, indicating continued upward movement.

Urban data shows a similar trend. Housing, water, electricity, gas and fuels increased by 16.22% year-on-year in urban areas, while rising by 1.63% on a monthly basis. In rural areas, the increase was even more pronounced on a yearly basis, reaching 18.34%, while monthly growth stood at 4.35%.

The report highlights that multiple components within this group contributed to the overall increase. House rent, which carries a substantial weight in the CPI basket, recorded a year-on-year increase of 6.09% and a month-on-month rise of 1.40% in urban areas.

Electricity charges showed a sharp increase of 33.71% year-on-year, although they declined slightly by 0.71% on a month-on-month basis. Gas charges also increased significantly by 22.91% year-on-year, reflecting sustained upward pressure on household utility expenses.

Liquefied hydrocarbons recorded one of the largest increases within the category, rising by 63.36% year-on-year and 38.34% month-on-month in urban areas. This sharp increase highlights the extent of volatility within energy-related components of household expenditure.

Other components also showed upward movement. Water supply costs increased by 7.75% year-on-year, while construction input items rose by 4.91%. Construction wage rates increased by 5.33% over the same period, indicating rising costs associated with housing development and maintenance.

In rural areas, similar trends were observed. Housing-related costs increased by 18.34% year-on-year, while components such as construction input items and solid fuel also recorded notable increases on a monthly basis.

The data indicates that utility-related expenses, including electricity, gas, and fuel-based items, played a significant role in driving the increase within this group. At the same time, rent and construction-related costs contributed to the overall rise in housing expenses.

The report further shows that the housing and utility group remains one of the largest contributors to the CPI basket, reflecting its importance in overall household expenditure patterns.

The continued increase in housing and utility costs highlights sustained upward pressure in this category during April 2026, as reflected in the official data.

Credit: INP-WealthPk