Pakistan’s inflation rose to 7% in February 2026, marking the highest level since October 2024, as electricity price hikes and rising global uncertainty pushed consumer costs upward.

According to the Pakistan Bureau of Statistics, the Consumer Price Index (CPI) increased 6.98% year-on-year, compared to 5.8% in January and 1.5% in February last year.

Electricity Tariffs Drive Surge

The biggest impact came from higher electricity prices after subsidy cuts and revised tariff structures.

Housing, water, electricity, gas & fuels index rose 9.65% annually

Electricity prices alone increased 10.03% month-on-month

These adjustments significantly burdened households already coping with high living costs.

Core Inflation & Interest Rates

Core inflation showed slight easing:

Urban core inflation: 7.1% (down from 7.2%)

Rural core inflation: Stable at 8.3%

The rise in CPI reduced real interest rates by around 120 basis points. The State Bank of Pakistan kept its policy rate unchanged at 10.5% last month.

Food Prices Mixed

Food inflation rose to 5.8%, up from 3.9% in January.

Major increases:

Tomatoes: +82%

Wheat: +42.6%

Wheat flour: +25.9%

Meat: +11.3%

Milk powder: +9.4%

Price declines:

Potatoes: -40%

Chicken: -21.8%

Gram pulse: -21.7%

Onions: -17%

Wholesale Pressure Rising

The Wholesale Price Index (WPI) increased to 1.0%, signaling growing producer-level cost pressures that could pass on to consumers in coming months.

External Risks Loom

Analysts warn that escalating Middle East tensions could:

Raise global oil prices

Increase Pakistan’s import bill

Pressure the rupee

Worsen inflation further

With millions of Pakistanis working in Gulf countries, any prolonged instability could also affect remittances — a key pillar of the economy.

Last Updated:March 03, 2026, 09:53 IST

Gold and silver prices in India eased after a rally driven by Middle East conflict. 24-carat gold is Rs 1,70,020 per 10gm, silver below Rs 3,00,000.

Amid escalating tensions in the Middle East, gold and silver prices have witnessed a sharp surge, with market experts warning of further increases if the conflict intensifies.

Gold and silver prices: Gold and silver prices across India eased slightly after rallying as investors rushed towards safe havens due to the conflict in the Middle East. The price of 24-carat gold stood at Rs 1,70,020 per 10 grams, while 22k gold was available at Rs 1,55,850 per 10 grams. These rates do not include GST and making charges.

Silver also fell by Rs 20,000 to come down below Rs 3,00,000.

On MCX, gold futures, whose expiry is on April 02, 2026, was traded at Rs 1,66,199 per 10 gram, with a rise of 2.53 per cent. While silver futures expiring on March 05, 2026, were trading at Rs 2,80,090 per kg, with a fall of 0.90 per cent.

Click here to add News18 as your preferred news source on Google.

Check Iran Israel War News Today Live Updates.

Follow News18 on Google. Join the fun, play games on News18. Stay updated with all the latest business news, including market trends, stock updates, tax, IPO, banking finance, real estate, savings and investments. To Get in-depth analysis, expert opinions, and real-time updates. Also Download the News18 App to stay updated.

Read More

Shop price inflation eased in February but consumers are still paying 3.5% more for food than a year ago, figures show.

Overall shop inflation fell slightly to 1.1% from January’s 1.5%, in line with the three-month average of 1.1%, as fierce competition between retailers kept price rises in check and customers benefited from promotions across health, beauty and fashion, according to the British Retail Consortium (BRC) and NIQ.

Prices of products other than food were down 0.1% year on year, a significant drop from January’s growth of 0.3%.

Overall food inflation fell slightly to 3.5% from 3.9% in January, while fresh food prices remained 4.3% higher than last February, a slight drop from January’s 4.4% and above the three-month average of 4.2%.

However falling global costs pushed ambient food inflation down to 2.3% – its lowest level in four years and a significant fall from January’s 3.1%.

BRC chief executive Helen Dickinson said: “Households got some welcome relief in February as shop price inflation eased.

“While the direction of travel is promising, prices are still rising, and many consumers remain under pressure.”

Mike Watkins, head of retailer and business insight at NIQ, said: “Since the start of the year, we have seen some competitive pricing across both the food and non-food channels which is helping to bring down inflation.

“Whilst the inclement weather and weak sentiment is making consumer demand rather unpredictable for retailers, at least shoppers are now seeing some of their cost-of-living pressures start to ease.”