CPI: the squeeze on households continues

Business Recorder reported that Pakistan’s year-on-year inflation eased to 9.6 percent in October, from 10.3 percent in September. Yet the consumer price index advanced 1.1 percent from the previous month, marking its fourth straight monthly rise above 1 percent. Core inflation, which leaves out food and energy, slowed to about 7.6 percent from 8.4 percent, though its July-to-October average remained higher than a year earlier.

Food and energy continue to weigh on household budgets: non-perishable food costs climbed 2.6 percent in October, while urban fuel and electricity prices were up 41.3 percent and 22.9 percent year on year. Rural inflation averaged 10.6 percent over the first four months of FY27, compared with 9.7 percent in cities. The State Bank set its policy rate at 12 percent after a 50-basis-point increase; the article says food supply and energy costs remain important to the inflation outlook.