By Farooq Awan

Housing, water, electricity, gas and fuels recorded a 10.51% year-on-year increase in urban areas in February 2026, according to the Monthly Review on Price Indices (Base Year 2015-16) released by the Pakistan Bureau of Statistics (PBS), underscoring continued pressure on household utility expenses.

The Urban Consumer Price Index (UCPI) shows that the housing group index rose to 270.49 in February 2026 from 244.76 in February 2025. On a month-on-month basis, the index increased by 1.73% compared to January 2026, when it stood at 265.90.

With a weight of 27.03% in the urban CPI basket, the housing, water, electricity, gas and fuels category remains one of the largest components of urban household expenditure. The group contributed 0.45 percentage points to the overall month-on-month urban CPI increase and 2.67 percentage points to the year-on-year rise.

Electricity charges were a key driver of the monthly increase. The electricity index surged to 289.28 in February from 262.92 in January, marking a 10.03% month-on-month rise. On a year-on-year basis, electricity charges were 7.32% higher than the 269.56 recorded in February 2025.

Gas charges continued to post sharp annual growth. The gas index stood at 1817.96 in February 2026, unchanged from January but significantly higher than 1479.08 in February 2025, reflecting a 22.91% year-on-year increase.

Liquefied hydrocarbons also registered gains, rising 0.97% month-on-month to 362.10 in February from 358.63 in January. Compared to 324.38 in February 2025, the index was up 11.63% year-on-year.

Solid fuel prices increased by 1.71% over January, with the index climbing to 246.24 in February from 242.09. On an annual basis, solid fuel prices were 8.03% higher than the 227.94 recorded in February last year.

House rent, which carries the largest weight within the housing group at 19.26% of the urban CPI basket, remained unchanged at 178.39 on a month-on-month basis. However, it recorded a 6.13% year-on-year increase compared to 168.09 in February 2025.

Other housing-related components also showed upward movement. Construction input items rose by 0.15% month-on-month and 2.70% year-on-year, while construction wage rates increased by 0.53% and 6.01% over the same periods. Water supply charges were 6.95% higher than a year earlier, and garbage collection services recorded a 1.63% annual increase.

The data suggest that housing and utility costs remained a significant contributor to urban inflation in February 2026, with double-digit annual growth in the overall housing group and particularly strong increases in gas and electricity charges.

Credit: INP-WealthPk