The August reading was higher than the Finance Ministry’s forecast of 10% to 11% and marked a significant increase from the 9.2% annual inflation recorded in July 2026. Inflation stood at just 3.1% in August 2025.
On a month-on-month basis, overall inflation increased by around 1.2% in August compared with July, adding to pressure on household budgets.
Rural areas recorded a higher annual inflation rate of 12.22%, while urban inflation stood at 10.43%. On a monthly basis, prices increased by 1.60% in rural areas and 0.91% in urban areas.
The PBS report showed notable increases in the prices of several essential items. In urban areas, onion prices surged 45.8% during the month, while eggs became 11.51% more expensive. Potato prices rose 6.8%, vegetables 5.5%, wheat 5.2% and pulses 4.7%.
Other major increases included a 5.6% rise in motor fuel prices and a 4.1% increase in water supply charges. Electricity charges also rose by 1.17% during August.
The latest figures highlight renewed inflationary pressure on consumers and could add to concerns over the cost of living as prices of food, fuel and other essential services continue to rise.