Karachi: Pakistan's Consumer Price Index (CPI) inflation for July 2026 was reported at 9.2% year-on-year (YoY) and 1.2% month-on-month (MoM), marking a return to single-digit inflation after three months of double-digit figures. The July inflation figures were primarily driven by increases in food prices, alongside notable growth in the transport and communication sectors.

According to JS Global, the YoY inflation rate for July 2026 was significantly influenced by a 10.6% increase in food prices, 15% growth in the transport sector, and a 14% rise in the communication segment. On a MoM basis, food prices were the largest contributor with a 4.2% increase, while the communication sector saw a notable 13% growth.

Core inflation remained largely unchanged at 8.4% YoY, despite a decrease in headline inflation from 11.1% in June 2026 to 9.2% in July 2026. Food inflation registered a 4.16% rise MoM, driven by sharp increases in the prices of tomatoes, onions, chicken, and eggs, which rose by 117%, 20%, 19%, and 14% respectively. Wheat prices also increased by 7%.

The transport segment experienced a 5.2% MoM decline, despite a 15% increase YoY, reflecting lower average fuel prices compared to the previous month. The Housing, Water, Electricity, and Gas category reported a decrease in inflation of 0.62%, with an 8% MoM drop in Liquefied Petroleum Gas prices and a 3% decline in electricity charges. Electricity charges fell mainly due to a reduction in the Fuel Charges Adjustment and a negative Quarterly Tariff Adjustment.

The communication sector recorded a substantial MoM growth of 12.7%, led by a 19% increase in communication services, which includes mobile call charges, telephone call charges, and internet bills. With a July 2026 inflation rate of 9.2%, real rates in Pakistan stood at 2.3%, aligning with the country's historic average.