ISLAMABAD: Rising tensions in the region are beginning to impact Pakistan’s economy, with inflation reaching its highest level in 19 months.
The Pakistan Bureau of Statistics (PBS) released its monthly report, showing that inflation increased by 1.18% in March compared to February. The annual inflation rate for March 2026 rose to 7.30%, the highest since August 2024.
According to the PBS report, the average inflation during the first nine months of the current fiscal year (July 2025 – March 2026) stood at 5.67%. For comparison, February 2026 recorded an annual inflation rate of 6.98%, while March 2025 had just 0.7%.
Rural areas saw monthly inflation of 0.96%, while urban centers recorded 1.34%. The annual inflation in rural regions rose to 7.17%, and in cities to 7.39%.
The Federal Ministry of Finance had estimated inflation for March to range between 7.5% and 8%.
