Karachi: Pakistan's Consumer Price Index (CPI) is anticipated to reach 5.7% for January 2026, with average inflation for the first seven months of the fiscal year expected to be approximately 5.2%. This marks a decrease from the 6.6% recorded during the same period last year.

According to JS Global, food inflation is predicted to register at 4.7% year-on-year, with a month-on-month increase of 80 basis points. This rise is attributed to the higher prices of wheat, chicken, and fresh vegetables. The State Bank of Pakistan (SBP) has decided to maintain the policy rate at 10.5% following a recent Monetary Policy Committee meeting. The decision was influenced by the persistence of core inflation, a wide trade deficit, and stronger than expected domestic growth, which reduces the necessity for monetary easing.