Karachi: Pakistan's Consumer Price Index (CPI) is projected to reach 10.9% year-on-year in August 2026, driven by increased transport costs due to elevated fuel prices and higher food costs. The geopolitical tensions affecting energy trade routes have contributed to global uncertainty, prompting the State Bank of Pakistan (SBP) to maintain its policy rate at 11.50%.

According to JS Global, the renewed geopolitical flare-ups pose significant challenges to the nation's economic stability. The Monetary Policy Committee (MPC) of the SBP decided to keep the policy rate unchanged in response to external risks. An alternative scenario presented by JS Global suggests that prolonged geopolitical tensions in the Middle East could result in higher imported energy costs, temporarily pushing Pakistan's inflation to 9% before settling at approximately 8% if geopolitical conditions ease.