Islamabad: The average inflation rate in the country during the first quarter (July to September) of the current fiscal year 2026-26 has been 4.22 percent, however, during the last month (September) the annual inflation rate reached 5.6 percent, which is higher than the Ministry of Finance’s estimate of the inflation rate in September to be between three and a half to four percent.

The Federal Bureau of Statistics has released a monthly report on inflation, according to which the inflation rate during September was two percent compared to August.

According to officials, the Ministry of Finance had estimated the inflation rate for September to be between 3.5 and 4.5 percent. According to the Bureau of Statistics, the average inflation rate in the July-September quarter was 4.22 percent.

The report stated that the annual inflation rate was recorded at 2.99 percent in August 2025, while inflation increased by 6.9 percent in September 2024.

The Bureau of Statistics said that during September 2025, the monthly inflation rate in villages increased by 2.8 percent, while inflation in cities increased by 1.5 percent.

The report further stated that the annual inflation rate in villages was 5.8 percent last month, the annual inflation rate in cities in September was 5.5 percent, while the Ministry of Finance estimated inflation for September to be between 3.5 and 4.5 percent.

The Ministry of Finance, in its monthly economic survey and September 2025 outlook, had said that the agricultural sector is likely to be affected due to the ongoing floods in 2025, and flood-related disruptions could put pressure on the food supply chain, resulting in an increase in prices.

It was further stated that due to this, inflation will increase temporarily, but it is expected to remain under control between 3.5 and 4.5 percent in September 2025.