Pakistan recorded a further rise in inflation in May, with the annual inflation rate reaching its highest level in nearly two years, according to monthly data released by the Pakistan Bureau of Statistics.
The report showed inflation rose by 0.52 percent month-on-month in May compared with April, the highest monthly reading since June 2024.
Official figures show the annual inflation rate accelerated to 11.66 percent in May 2026, up sharply from 3.5 percent in the same month last year.
The latest data indicate continued upward price pressures despite earlier expectations that inflation would remain relatively contained during the current fiscal year.
Data from the statistics bureau showed average inflation from July 2025 to May 2026 was 6.69 percent. In comparison, annual inflation in April 2026 was 10.89 percent, a noticeable increase within a month.
The report also showed differences between urban and rural trends. On a monthly basis, rural inflation rose by 0.30 percent in May, while urban centres recorded a larger increase of 0.68 percent.
Annually, rural inflation stood at 11.48 percent and urban inflation at 11.79 percent, indicating price increases affected consumers across both areas.
The figures come as policymakers prepare the federal budget and set economic targets for the coming fiscal year, with inflation management remaining a key challenge for the government.
Economists say rising inflation could influence monetary policy decisions and may affect household spending as consumers face higher prices for essential goods and services.