Business & Economy

Inflation rises in September, rural areas more affected

The Pakistan Bureau of Statistics has released its latest monthly report, according to which the inflation rate recorded a 2 percent increase in September 2025 compared to August.

According to the data, the annual inflation rate in rural areas was 5.8 percent, which is slightly higher than the 5.5 percent rate in cities. On a monthly basis, inflation in villages increased by 2.8 percent, while in cities this increase was 1.5 percent.

The Ministry of Finance had already estimated inflation for September at between 3.5 and 4.5 percent, while the average inflation in the July-September quarter was recorded at 4.22 percent.

In comparison, the annual inflation in August 2025 was 2.99 percent, while the same rate was recorded in September 2024 at 6.9 percent. Thus, although prices have increased this month, the situation looks relatively better compared to last year.

The report said that the recent floods affected the supply of food and basic necessities, which was likely to lead to a temporary increase in inflation.

According to experts, although the overall pace of inflation is under control, rural households are being hit harder as they face problems with access to basic goods and transport costs.

Economists say the next few months will be crucial to see whether this increase is just a temporary effect of natural disasters or the beginning of further pressure on prices.

Business Desk

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