Pakistan inflation jumps to 20-month high of 10.9% in April

ISLAMABAD: Pakistan’s annual inflation rate rose to 10.9 per cent in April, the highest level in 20 months, driven largely by a sharp increase in transport costs, official data showed on Saturday.

The Pakistan Bureau of Statistics said the Consumer Price Index (CPI) accelerated from 7.3 per cent in March, marking its highest reading since July 2024 and exceeding the State Bank of Pakistan’s 5–7 per cent target range.

The surge came shortly after the central bank raised its policy rate by 100 basis points to 11.5 per cent, citing inflationary pressures.

Authorities attributed the spike primarily to rising transport and fuel costs, which have been impacted by higher global oil prices following tensions in the Middle East and disruptions linked to the Strait of Hormuz.

Transport inflation jumped to 29.9 per cent year-on-year in April from 12.5 per cent a month earlier, while housing and utilities rose to 16.8 per cent from 11.5 per cent. Food and non-alcoholic beverage inflation also increased to 7.6 per cent from 3.6 per cent.

On a month-on-month basis, CPI rose 2.5 per cent in April, the fastest pace in nine months, compared with 1.2 per cent in March.

The increase adds pressure on policymakers as Pakistan continues to grapple with external shocks and rising energy costs that are feeding into broader inflationary trends.