By Moaaz Manzoor

Pakistan’s headline inflation accelerated to 7.3 percent on a year-on-year basis in March 2026, up from 7.0 percent in February, while month-on-month inflation rose sharply by 1.2 percent, signalling renewed pressure on consumer prices, according to the Monthly Review on Price Indices released by the Pakistan Bureau of Statistics.

The data shows that inflationary pressures strengthened across both urban and rural areas. Urban inflation increased to 7.4 percent in March from 6.8 percent in February, while rural inflation stood at 7.2 percent, slightly easing from 7.3 percent in the previous month. On a monthly basis, urban prices rose 1.3 percent, compared to a 1.0 percent increase in rural areas.

The latest reading marks a notable jump from March 2025, when inflation stood at just 0.7 percent, highlighting a clear upward trend in prices over the past year. The increase also reflects an acceleration from February’s modest 0.3 percent rise, indicating that inflationary momentum strengthened during March.

Core inflation indicators also pointed to persistent underlying pressures. Non-food, non-energy inflation in urban areas rose to 7.4 percent year-on-year, while rural core inflation reached 8.4 percent. Similarly, trimmed core inflation increased to 5.9 percent in urban areas and 6.3 percent in rural areas, reflecting a steady rise in broader price levels beyond volatile components.

The data further shows that average inflation during the first nine months (July-March) of FY2025-26 stood at 5.67 percent nationally, slightly higher than 5.25 percent recorded during the same period last year. Urban average inflation was recorded at 5.71 percent, while rural inflation stood at 5.61 percent.

The increase in both headline and core inflation suggests that price pressures are becoming more entrenched across different segments of the economy. The sharper rise in urban inflation also indicates that city-based households are facing relatively stronger cost pressures.

The March data underscores a broad-based inflationary trend, with both short-term and underlying indicators moving upward, potentially adding to concerns about the persistence of inflation in the coming months.

Credit: INP-WealthPk