Inflation rebounds to 11pc in August

Dawn reported that consumer prices accelerated to 11.1pc in August, up from 9.2pc in the prior month, with food and energy costs as the main drivers. The Pakistan Bureau of Statistics released the figures on Tuesday. The rise snapped a two-month slide, and on a monthly basis prices climbed 1.2pc.

Transport costs surged 20.17pc against the same month last year, a jump linked to higher petrol and diesel prices. Perishable food rose 24.91pc in August, while non-perishable items gained 12.28pc month on month, adding strain to household budgets. The State Bank responded by raising its policy rate to 11.50pc from 10.50pc.

Urban inflation came in at 10.4pc, while rural inflation reached 12.2pc, and core readings were 8.8pc and 8.6pc respectively. FY26 inflation was 7.05pc, up from 4.49pc in FY25, and the government has projected an FY27 target of 8.2pc.