#CPIWatch Here’s your up-to-date #CPIWatch analysis and discussion (with chart):

Latest CPI developments (global & Pakistan focus)

Pakistan’s headline Consumer Price Index (CPI) inflation was reported at 5.8 % year-on-year in January 2026, up slightly from 5.6 % in December 2025, indicating modest price pressures persist in the economy. Year-on-year food, energy and core components continue to influence the CPI trend. On a monthly basis, prices rose by 0.4 % in January, marking a mild uptick in short-term inflation momentum. These figures are broadly in line with official forecasts by the Ministry of Finance and central bank expectations, suggesting inflation remains within the government’s target band.�

Business Recorder

Earlier in late 2025, headline inflation had fluctuated—climbing to 6.2 % in October and 6.1 % in November before easing slightly, reflecting supply-side influences such as flood-related disruptions to food markets and volatile energy costs that temporarily pushed up consumer prices. Urban and rural inflation rates showed similar movements, with rural inflation occasionally outpacing urban. Overall, the trend points to a moderation from the much higher inflation rates seen in previous years but not a sharp decline yet.�

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Discussion & implications

• Moderating inflation: The recent readings show inflation pressure easing compared to past peaks, but price increases—especially for essentials like food—remain notable.

• Policy outlook: Stable CPI figures within target ranges reduce urgency for aggressive monetary tightening, though central banks remain watchful for upside surprises.

• Consumer impact: Households may experience slower erosion of purchasing power, but elevated food and energy price components still challenge budgets.#CPIWatch #CZAMAonBinanceSquare #USNFPBlowout