Inflation Falls to 9.6% in October, but Food and Fuel Costs Continue to Burden Pakistanis Mian Zahid Hussain

Pakistan’s annual inflation rate eased to 9.6% in October from 10.3% in September. However, rising food and fuel prices continue to put pressure on households and industry, said Mian Zahid Hussain, President of the Pakistan Businessmen and Intellectuals Forum (PBIF).

He welcomed the latest figures released by the Pakistan Bureau of Statistics (PBS). However, he cautioned that consumer prices still increased by 1.1% compared with September.

Inflation averaged 10.05% during the first four months of the current fiscal year. This compares with 4.79% during the same period last year.

He said higher prices for wheat flour, petroleum products and other essentials continued to reduce the purchasing power of low-income households.

Food prices drive monthly inflation

Mian Zahid Hussain noted that consumer prices had increased by 1.7% month on month in October 2025, compared with 1.1% in October 2026. This lower monthly increase helped reduce the annual inflation rate, although prices continued to rise.

Core inflation, which excludes food and energy, also eased. It fell from 8.6% to 7.8% in urban areas and from 8.1% to 7.1% in rural areas.

However, annual inflation measured by the Sensitive Price Indicator (SPI) increased from 8.4% to 8.7%. This showed that everyday essentials continued to become more expensive for salaried and low-income households.

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Food and beverage prices rose 2.26% in October. According to Mian Zahid Hussain, this increase accounted for nearly three-quarters of the overall monthly rise in consumer prices.

Wheat flour prices increased by 9.41% in rural areas and 7.54% in urban areas. Meanwhile, chicken prices rose by 16.91% and 19.38%, respectively.

Monthly inflation reached 1.5% in rural areas, compared with 0.8% in cities. He said food takes up a larger share of rural household budgets. Therefore, higher flour and staple prices place additional pressure on rural families.

Rising wholesale and fuel costs threaten industry

Mian Zahid Hussain said monthly wholesale inflation slowed from 1.9% to 0.9%. However, annual wholesale inflation increased from 13.3% to 13.8%.

Wholesale prices of furnace oil, diesel and wheat rose by 74.55%, 55.45% and 39.72%, respectively, compared with October last year. Consumer transport prices also increased by 28.61%.

He warned that higher fuel costs raise the expense of transporting raw materials to factories and finished products to markets. Small businesses face particular pressure because they have limited capacity to absorb additional costs.

He also linked rising energy costs to the US-Iran conflict. According to him, disruption to the Strait of Hormuz, a major route for global oil and gas shipments, had increased supply concerns. He said Brent crude had crossed $117 per barrel.

Higher energy prices affect importing countries such as Pakistan. Furthermore, a slowdown in Gulf economies could put pressure on workers’ remittances.

He appreciated the government’s efforts to reduce the burden but called for broader relief measures for households and industry.

Mian Zahid calls for stronger wheat supply monitoring

Mian Zahid Hussain urged the government to publish updated information about available wheat stocks and market deliveries online.

He also called for stronger action against hoarding and district-level monitoring of flour prices and availability. Authorities should ensure timely supplies wherever shortages emerge, he added.

He noted that the State Bank had increased its policy rate by 50 basis points to contain inflation. However, higher interest rates also raise borrowing costs for businesses.

He stressed that lasting price stability requires more than monetary tightening. The government must also tackle food hoarding, improve distribution systems and reduce energy costs.

Such measures, he said, are essential to protect household purchasing power and keep industrial activity running.