Pakistan’s inflationary trend showed renewed upward pressure in October 2025 as headline inflation, measured through the Consumer Price Index (CPI), rose to 6.2 percent on a year-on-year basis. The latest data indicates a marginal yet notable increase from the 5.6 percent recorded in the previous month, although inflation still remains lower than the 7.2 percent rate observed in October 2024. The uptick reflects evolving price dynamics across essential categories, capturing the shifting economic conditions that households continue to navigate.
On a month-on-month basis, CPI inflation grew by 1.8 percent during October 2025. While this rise is slightly lower than the 2.0 percent increase registered in September 2025, it remains higher than the 1.2 percent recorded in the same month last year. The persistent month-to-month elevation signals that various supply chain costs, administrative price adjustments and seasonal demand patterns are contributing to ongoing price movements.
A deeper breakdown of the year-on-year change highlights the categories that contributed most significantly to the overall inflation figure. Education costs led with a rise of 10.6 percent, reflecting higher tuition and institutional fee adjustments. Health expenses followed closely with an increase of 9.7 percent, indicating elevated prices for medical services, medicines and healthcare-related essentials.
Clothing and footwear prices recorded an 8.1 percent increase, a trend often tied to changing input costs and seasonal shifts. Transport costs rose by 6.7 percent, largely shaped by fuel price fluctuations and logistics-related adjustments. Non-perishable food items saw a 6.3 percent rise, suggesting continued grocery market pressures influenced by supply cycles and regional availability.
Restaurants and hotels experienced a 6.1 percent increase, a reflection of rising operational and commodity expenses passed on to consumers. Electricity, gas and fuels registered a 4.2 percent rise, aligning with tariff updates and global energy cost implications. The furnishing and household equipment maintenance category increased by 4.0 percent, showing the impact of imported component costs and domestic manufacturing adjustments.
Alcoholic beverages and tobacco saw a 3.3 percent increase, while perishable food items rose by 1.7 percent, indicating a softer but still positive price movement driven by seasonal variations in fruit and vegetable supply. The housing, water, electricity, gas and fuels category also recorded a 4.2 percent increase. In contrast, the recreation and culture segment witnessed a decline of 3.7 percent, becoming one of the few categories to ease overall inflationary pressure.
Weekly price movements, tracked through the Sensitive Price Indicator (SPI), further underline the mixed consumer experience. For the week ending 27 November 2025, the SPI increased by 0.73 percent. Out of the monitored 51 essential items, prices of 14 items increased, 12 items declined and 25 items remained unchanged. This variation reflects ongoing market adjustments influenced by seasonal demand, supply chain shifts and commodity availability across regions.
The combined inflation indicators paint a picture of a cost environment that continues to fluctuate across categories, with essential services and staple goods remaining the primary drivers of household expenditure pressure. Monitoring movements in key sectors will remain crucial for policymakers as they navigate the broader economic outlook in the coming months.
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