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Pakistan Inflation Hits World’s Fastest Acceleration Amid Economic Pressure
Pakistan became much more expensive for families in August 2026.
Its yearly inflation rate rose from 9.2% to 11.1%.
This was the fastest increase in the rate among the countries studied, although some countries still had higher overall inflation.
Higher food, energy and imported costs helped push prices upward.
Fuel costs, taxes and difficulties maintaining wheat supplies also contributed, according to the article’s quick answers.
More people in Pakistan were living in poverty and were unemployed.
The government provided funding for a cash-support program, but the Economic Survey said longer-term solutions also require jobs, education and healthcare.
The State Bank of Pakistan expects inflation to gradually move toward its target range by the end of the 2026-27 financial year.
Pakistan’s annual inflation rose from 9.2% in July to 11.1% in August 2026.
The 1.9-percentage-point increase was the fastest acceleration among 93 countries, tied with Fiji.
Pakistan ranked seventh for its August inflation rate, behind Argentina and Turkey.
Food, energy and imported-cost pressures affected transportation, production and retail prices.
Poverty rose to 28.9% and unemployment increased to 5.9 million people in FY26.
- Who
- Pakistan’s households, policymakers and the State Bank of Pakistan are affected by the inflation increase; BestBrokers analysed the international data.
- What
- Annual inflation increased to 11.1%, while the rate’s 1.9-percentage-point acceleration was the fastest in the comparison, tied with Fiji.
- Where
- Pakistan, with comparisons covering 93 countries and several South Asian economies.
- When
- The increase occurred between July and August 2026; the report was published on September 17, 2026.
- Why
- Food, energy and imported-cost pressures, along with fuel costs, taxes and wheat-supply difficulties, contributed to higher prices.
Key facts
- August inflation
- 11.1% annually
- July inflation
- 9.2% annually
- Inflation acceleration
- 1.9 percentage points, tied with Fiji for the fastest increase among 93 countries
- Global ranking
- Seventh by August inflation rate; Argentina recorded 33.5% and Turkey 31.51%
- Poverty rate
- 28.9% in FY26, up from 21.9% the previous year
- Unemployment
- 5.9 million people, with the unemployment rate rising to 7.1% from 6.3%
- State Bank target
- Inflation is expected to move toward the upper end of the 5%-7% target range by the end of FY27
Sources
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